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1 1  ■  1 1 1 II 1 1 1  ■  1 1 1 1 II ,  1 1 1 1 1  ■  1 1 1 , 1 1 1 1 1 1 1 » ,■  1 1 1 1  ■  1 1 1 1 1 1  li  1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 

ujmaoM,  cavt>o ru  \ap&>tA 



Thomas  E.  Jeffrey 
Lisa  Gitelman 
Gregory  Jankunis 
David  W.  Hutchings 
Leslie  Fields 

Theresa  M.  Collins 
Gregory  Field 
Aldo  E.  Salerno 
Karen  A.  Detig 
Lorie  Stock 

Robert  Rosenberg 
Director  and  Editor 


Rutgers,  The  State  University  Of  New  Jersey 
National  Park  Service,  Edison  National  Historic  Site 
New  Jersey  Historical  Commission 
Smithsonian  Institution 

University  Publications  of  America 
Bethesda,  MD 

Edison  signature  used  with  permission  of  McGraw-Edison  Company 

Thomas  A.  Edison  Papers 

Rutgers,  The  State  University 
endorsed  by 

National  Historical  Publications  and  Records  Commission 
18  June  1981 

Copyright  ©  1999  by  Rutgers,  The  State  University 

All  rights  reserved.  No  part  of  this  publication  including  any  portion  of  the  guide  and  index  or  of 
the  microfilm  may  be  reproduced,  stored  hi  a  retrieval  system,  or  transmitted  hi  any  form  by  any 
means— graphic,  electronic,  mechanical,  or  chemical,  hicludhigphotocopyhig,  recordhigor  taphig, 
or  information  storage  and  retrieval  systems— without  written  permission  of  Rutgers,  The  State 
University,  New  Brunswick,  New  Jersey. 

The  original  documents  hi  this  edition  are  from  the  archives  at  the  Edison  National  Historic  Site 
at  West  Orange,  New  Jersey. 

ISBN  0-89093-703-6 


Robert  A.  Rosenberg 
Director  and  Editor 

Thomas  E.  Jeffrey 
Associate  Director  and  Coeditor 

Paul  B.  Israel 

Managing  Editor,  Book  Edition 
Helen  Endick 

Assistant  Director  for  Administration 

Associate  Editors 
Theresa  M.  Collins 
Lisa  Gitelman 
Keith  A.  Nier 

Research  Associates 

Gregory  Jankunis 
Lorie  Stock 

Assistant  Editors 
Louis  Carlat 
AJdo  E.  Salerno 

Grace  Kurkowski 

Student  Assistants 

Amy  Cohen 
Bethany  Jankunis 
Laura  Konrad 
Vishai  Nayak 

Jessica  Rosenberg 
Stacey  Saelg 
Wojtek  Szymkowiak 
Matthew  Wosniak 


Rutgers,  The  State  University  of  New  National  Park  Service 
Jersey  John  Maounis 

Francis  L.  Lawrence  Maryanne  Gerbauckas 

Joseph  J.  Seneca  Roger  Durham 

Richard  F.  Foley  George  Tselos 

David  M.  Oshinsky  Smithsonian  Institution 

New  Jersey  Historical  Commission  Bernard  Finn 

Howard  L.  Green  Arthur  P.  Molelia 


James  Brittain,  Georgia  Institute  of  Technology 
R.  Frank  Colson,  University  of  Southampton 
Louis  Galambos,  Johns  Hopkins  University 
Susan  Hockey,  University  of  Alberta 
Thomas  Parke  Hughes,  University  of  Pennsylvania 
Peter  Robinson,  Oxford  University 

Philip  Scranton,  Georgia  Institute  of  Technology/Hagley  Museum  and  Library 
Merritt  Roe  Smith,  Massachusetts  Institute  of  Technology 


The  Alfred  P.  Sloan  Foundation 
Charles  Edison  Fund 
The  Hyde  and  Watson  Foundation 
National  Trust  for  the  Humanities 
Geraldine  R.  Dodge  Foundation 

National  Science  Foundation 
National  Endowment  for  the 

National  Historical  Publications  and 
Records  Commission 


Alabama  Power  Company 



Atlantic  Electric 

Association  of  Edison  Illuminating 

Battelle  Memorial  Institute 
The  Boston  Edison  Foundation 
Cabot  Corporation  Foundation,  Inc. 
Carolina  Power  &  Light  Company 
Consolidated  Edison  Company  of  New 
York,  Inc. 

Consumers  Power  Company 
Cooper  Industries 
Corning  Incorporated 
Duke  Power  Company 
Entergy  Corporation  (Middle  South 
Electric  System) 

Exxon  Corporation 

Florida  Power  &  Light  Company 

General  Electric  Foundation 

Gould  Inc.  Foundation 

Gulf  States  Utilities  Company 

David  and  Nina  Heitz 

Hess  Foundation,  Inc. 

Idaho  Power  Company 

IMO  Industries 

Internationa]  Brotherhood  of  Electrical 

Mr.  and  Mrs.  Stanley  H.  Katz 
Matsushita  Electric  Industrial  Co.,  Ltd. 
Midwest  Resources,  Inc. 

Minnesota  Power 
New  Jersey  Bell 
New  York  State  Electric  &  Gas 

North  American  Philips  Corporation 
Philadelphia  Electric  Company 
Philips  Lighting  B.V. 

Public  Service  Electric  and  Gas  Company 

RCA  Corporation 

Robert  Bosch  GmbH 

Rochester  Gas  and  Electric  Corporation 

San  Diego  Gas  anti  Electric 

Savannah  Electric  and  Power  Company 

Schering-Plough  Foundation 

Texas  Utilities  Company 

Thomas  &  Betts  Corporation 

Thomson  Grand  Public 

Transamerica  Delaval  Inc. 

Westinghouse  Foundation 
Wisconsin  Public  Service  Corporation 


A  Note  on  the  Sources 

The  pages  which  have  been 
filmed  are  the  best  copies 
available.  Every  technical 
effort  possible  has  been 
made  to  ensure  legibility. 


Reel  duplication  of  the  whole  or  of 
any  part  of  this  film  is  prohibited 
In  lieu  of  transcripts,  however, 
enlarged  photocopies  of  selected 
items  contained  on  these  reels 

may  be  made  in  order  to  facilitate 

National  Phonograph  Company  Records 
Correspondence,  Domestic  (1909) 

This  folder  contains  correspondence  and  other  documents  relating  to  the 
commercial  exploitation  of  phonographs  in  the  United  States.  Most  of  the  items 
are  letters  to  and  from  Frank  L.  Dyer,  president  of  NPCo.  Other  correspondents 
include  Carl  H.  Wilson,  general  manager;  Leonard  C.  McChesney,  manager  of 
the  Advertising  Department,  F.  K.  Dolbeer,  manager  of  sales;  and  Eldridge  R. 
Johnson,  president  of  the  Victor  Talking  Machine  Co.  Included  are  letters 
pertaining  to  the  manufacture,  distribution,  and  sale  of  phonographs  and  cylinder 
records,  as  well  as  correspondence  about  litigation,  patents,  and  other  legal 
matters.  Among  the  documents  for  1909  are  items  concerning  the  activities  of 
the  Advertising  Department,  the  introduction  of  Amberola  records,  and  the 
development  of  a  concealed-horn  phonograph  and  an  eight-minute  record.  Also 
included  are  letters  relating  to  the  decision  and  settlement  in  the  New  York 
Phonograph  Co.  case,  to  competition  and  cooperation  between  NPCo  and  Victor 
Talking  Machine  Co.,  and  to  corporate  reaction  to  the  Copyright  Act  of  1 909.  In 
addition,  there  are  pamphlets  giving  jobbers'  and  dealers'  discounts  forthe  year 
and  an  undated  Edison  memorandum  proposing  a  record  exchange  system. 

Approximately  10  percent  of  the  documents  have  been  selected.  Among 
the  items  not  selected  are  documents  regarding  local  and  state  legislation  and 
the  business  of  individual  dealers  and  jobbers. 

Edison  Models  C,  D  and  H  Reproducers  40% 

Edison  Universal  Shaving  Machines  -  30% 

Repealing  Attachments  -----  40% 

Edison  Primary  Batteries,  Battery  Parts 

Chloride  Accumulator  Storage  Batteries  20% 

Phonograph  Parts  (Repair  and  Supply) 

see  Catalogue  of  Parts .  50% 

Miscellaneous  Supplies,  such  as  Speak¬ 
ing  Tubes,  Hearing  Tubes,  Multiple 
Attachments,  Flexible  Connections, 

Chip  Brushes,  Graphite  and  Stratena  60% 


Nei  Prices 

Recording  Horns .  $1.50 

Printed  Matter  Racks  -  —  -  .30 

Small  size,  (2  doz.  in  package)  per  doz.  .  80 

Large  size,  (1  doz.  in  package)  per  doz.  1 . 50 







January  1,  1909 

Supersedes  all  Discount 
Sheets  of  previous  date. 


ORANGE.  N.  J,  U.  S.  A. 

Dealers’  Discounts 

Triumph  Horn 



Gem  Crane  -  --  --  --  -  $.18 

Standard,  Home,  Triumph,  Balmoral, 

Conqueror  and  Alva  Cranes  -  -  -  .00 

Idelia  (Oxidized  finish)  -----  1,80 


Edison  Ambcrol  Records,  net  each  -  -  $ .  28 

Edison  Standard  Records,  net  each  -  -  .20 

Edison  Grand  Opera  Records,  net  each  .45 

Edison  Concert  Records  -  -  -  -  -  40% 

Edison  Blanks  (Standard  and  Concert)  30% 



Triumph  or  Alva  -  - 
Balmoral  or  Conqueror 




Edison  Models  C,  D  and  II  Reproducers  50%  40% 

Edison  Recorders . -  50%  40% 

Edison  Universal  Shaving  Machines  -  30%  30% 

Edison  Primary  Batteries,  Battery  Parts 

and  Renewals . -  30%  20% 

Chloride  Accumulator  Storage  Batteries  20%  20% 







January  1,  1909 

Supersedes  all  Discount 
Sheets  of  previous  date. 


ORANGE,  N.  J,  U.  S.  A. 

-  A  Saw  Messrs.  Johnson  and  Ceissler  in  Philadelphia  to-dav  on  the 
/Allowing  points:  3 

1.  In  reference  to  the  Pierman  air  reproducer.  They  sug¬ 

gest  that  when  we  are  ready  to  put  it  out  model  be  submitted  to 
Mr.  Pettit,  and  if  it  does  not  infringe  they  will  have  no  objec¬ 
tion.  ,If  it  does  infringe  and  there  is  a  probability  of  the 
patents  being  knocked  out;  they  believe  it  wouli  bn  better,  to  have 
kn  understanding  between  the  two  companies  by  which  we  will  be 
licensed  under  the  Parsons  and  Short  patents.  i 

\  2.  On  the  subject  of  copyright,  after  considerable l<4iscus- 

sp.on  they  agreed  with  me  that  unless  the  situation  raateriiaiy 
change s  the  best  course  would  be  to  compel  the  composers  (ft  come 
to  us,  rather  than  that  we  should  go  to  them.  A 

1  3.  They  are  entirely  willing  to  co-operate  with  us  bn  the 

subject  of  talent  and  will  agree  that  so  long  as  we  remain\in 
tlf  cylinder  business  and  they  remain  in  the  dis&  business  they 
will  make  no  contracts  with  talent  to  exclude  us,  except  ini  the 
Rel  Seal  list.  This  applies  to  talent  now  contracted  for 
well  as  for  the  future.  They  agreed  with  my  suggestion,  -th^t 
whenever  possible  talent  should  sign  exclusive' contracts  with'  w, 
for  the  cylinder  line  and  with  them  for  the  disc  line,  thereby 
exc  .uding  the  Columbia.  The  arrangement  is  .simply  an  understand¬ 
ing  between  ourselves,  which  can  be  changedat  the  option  of  either 
par  y  upon  reasonable  notice  to  the  other.  "W.  H.  Miller,  for 
the  National  Co.  and  C.  G.  Childs  for  the  Victor  Co.  are  to  work 
out  the  details. 

|  4.  Mr.  Johnson  i3  very  anxious  to  have  modifications  made 
in  the  Patent  laws  by  which  increased  protection  can  be  afforded 
to  inventors  and  many  of  the  injustices  now  common  will  be  impos¬ 
sible.  He  believed  that  the  life  of  a  patent  ought  to  be  extended 
for  as  many  years  as  it  is  involved  in  litigation,  but  this  seems 
to  bi  impractical.  I  think  a  better  suggestion  would  be  to 
amend!  the  statutes  so  as  to  provide  that  preliminary  injunctions 
shalJl  be  granted  in  all  cases  where  the  patentee  is  a  bona  fide 
manuiacturer  and  the  defendant  comes  into  the  field  afterwards 
and  where  infringement  is  reasonably  certain,  the  validity  of  the 
patent  being  left  for  final  hearing  and  the/ complainant  being 
required  to  file  a  bond.  possibly  O’Connell  might  be  able  to 
work  Ip  a  propaganda  on  these  lines.  I  promised  Mr.  Johnson  to 
write Ihim  more  in  uetail. 

5.  It  is  generally  understood  between  us  that  so  far  as 
possible  cordial  relations  should  be  cultivated  between  the  two 
companies  and  that  where  our  interests  are  in  common  we  should 
co-operate  as  closely  as  possible.  A  meeting  between  us  every 
two  orj three  weeks  would  no  doubt  bring  about  very  desirable 
results  in  the  end. 


F.  I..  D. 

TO  TII1H  NUMI.Klt  j,  r  L  1>  V  IS  XI 



Mr.  Aylsvrorth:  ’  l/7/o9. 

Mr.  TSdinon  upoke  to  me  the  other  day  on  the  subject  of 
using  lattp  blaok  in  our  record  composition,  and  hr  seems  to  feel 
that  the  presence  of  this  ingredient  results  in  the  wear  of 
the  sapphire.  Is  there  any  reason  why  lamp  black  should  not  be 
entirely  omitted? 

EbD/lW  „vF.  L.  D. 

The  interest  you  manifested  last  week  in  the  farm 
paper  advertising  being  done  by  the  Victor  Company,  BabBon 
Bros,  and  ourselves,  prompted  the  preparation  of  the 
data  herewith  concerning  the  various  forms  of  our  publication:, 
advertising.  It  is  submitted  with  the  hope  that  you  will 
find  its  details  interesting  and  informing. 

According  to  our  annual  custom,  we  arranged  in  the 
lata  summer  the  usual  schedule  of  general  weeklies  and 
monthly  magazines,  covering  approximately  $125,000,  the 
same  amount  as  spent  in  the  same  class  of  publications 
during  the  year  ending  August,  1908.  The  publications 
in  this  schedule  are  sho\7n  on  sheets  A.  At  this  time  it 
was  thought  that  we  would  spend  about“$100 ,000  additional  in 
newspapers  in  the  United  States  and  Canada. 

As  you  will  recall,  it  was  decided  in  October  not  to 
have  a  newspaper  oampaign  this  year,  hut  instead  to  spend 
the  additional  $100,000  in  farm  papers,  country  v/eeklies, 
soma  additional  magazinas,  etc.,  besides  spending  about  the 
same  amount  in  Canada  as  in  the  previous  year.  To  this  end 
the  following  schedules  were  prepared: 

Additional  Magazines  &  National  Weeklies  §10.857.16 
Barm  Papers  38,265.61 
Foreign  language  Papers  3,414,07 
Country  Weeklies, Jacob* s  hist  and  ’ 

:3  Sunday  Magazine  Sections  22,072.09 
Canada  (approximated)  12.000,00 

,  §86,608.93 

The  remaining  $13,400  may  be  expended  in  getting  special 
positions  in  magazines  or  speoial  advertising,  or  it  may 
not  be  spent  at  all  should  business  not  warrant  it. 

Sheets  _A.  and  B--  The  amount  spent  in  these  publications 
is,  in  our  opinion,  about  th8  same  as  being  expended  by  the 
Victor  Company  in  the  same  class  of  mediums,  and  is  probably 
$60,000  more  than  the  Columbia  Company  will  spend  if  it 
continues  to  advertise  as  it  has  been  doing  for  some  months 
past.  The  latter  company's  expenditures  for  the  past  three 
months  have  been  quite  heavy,  being  nearly  aB  large  as  those 
of  the  Victor  Company  and  ourselves,  but  it  is  not  likely  that 



Mr.  Edison  -2- 

Jan.  7,  1909. 


f am  papers  fn  BuTornfftm?"  The8llat°haa\36  °f  th®  t9Bt 

We  have  Planned  L  See  *?  °«^s. 

impending  ?r  om  §lQloOOa?on$60<iOOOr in^Arm  ^  ^“^“Pany 
our  expenditure  of  $38,000?  In  «rL,i^  ?+PaP8.^  88  ^inet 

to  prevent  duplication'1'  Babaona  do  not  use, 

>»»  « 

for  one’  a  ea  son  a  FI  ea  s  t^t  o^t  rv  ~^SLS~~  Xt  Beemad.  das  ir  able, 
Papers  printed  ^ 

to  c o'Stry  1118  “attar  referring 

■because,  of  Itheir'  wide  o ir Oulat iorTln  mn’  n  ara  U8inS  'them 

communities. .  The  religious  pJpers^riS  ja^f  and  rural 

Associated  Sunday  Magazines  £n  Shfets  A?  ;ln  the 

of  tha'papers  Tn^^thf1? ourtSunday9oomtinationHati0^S  Of  each 
groups  show  that  the- total  cir^la?ion  ^  ??8*  The8e  ' 
these combinations is  5,600,000.  th®  pap9rs  *n  ' 

in  clties  of  the  papers 

of  the  If.  Y.  Yf^g8|"fnth8  s^day  Ifagazine,  Section's 

a  combined  circulation  of  l  453  vVf  Y*  Tribune,-  we  get 
Tribune,  Examiner  and  Record-Herald3  we  BL?slng  Chi°ago 
-  circulation  of '  1,244  941)  fat  a  combined  . 

Sunday  Magazines  covers  a  nof?nrfd«J  fortheABSOciat®d  • 

..other  three  combinations  coveJ^a  period7^  ?nd  th?t;°f  the 
Pap.r.  «  ^SSSP^^&SIg  S.S3&, 

Mr.  Edison  -3- 

Jan.  7,  1909. 

ste  months.  We  may  find  it  profitable  to  continue  to 
advertise  in  the  combinations  that  we  have  planned  to  use 
for  six  months  only.  This  will  ha  determined  later. 

It,  +T,fh?at  E-Sives  th9  "a3193  and  circulations  of  the  papers 
l'iBh  1119:7  rePr0sent  about  all  of  the 
religious  denominations  of  the  South. 

.  ..  Frooff  allowing  the  character  of  the  copy  that  we  are  usinv 

&s  LItr!°U8  PaP9rS  Wil1  b9  8ent  with  this  matfer  or  l  f ew  g 

the  fSlo“r^oun?l:f0r9S°ine’  W9  W  arranged  to  spend 



SUNDAY  MAGAZINES (Not  including  Asso. Sunday) 

3B, 265.61 

0Um2!?ry  the  circulations  of  the  publications  in 
which  our  advertisements  will  appear  is  as  follows: 

fS0Se5EICLIES  &  M°NTIIIY  aAGAgINES'  .  •  16,132,231 




SUNDAY  MAGAZINES (  Not  including  Asso. Sundays)  4  573  231 


with  a  lis?1^  ?^°^andUm  ^°l?09rnlnB  the  Canadian  advertising 
days.  PaP9rB  1591115  U0ed  wil1  159  89nt  70U  in  a  flw 

any^of.,the  foregoing  matter  is  not  clear  or  vou 
advise  SaT  furth9r  infor“ation  on  any  particular  point,  please 

Iu.  C.  MoChesney. 

Copy  to  Hr.  Dyer 



The  publications  named  on'  attached  sheet  comprise 
those  Which  we  planned  to  use  in  the  schedule  made  up 
_time  we  decided  to  spend  roughly 
$125,000  for  this  character  of  advertising.  The  cost 
giveB  the'  total  amount  for  each  publication  and  includes 
the  agency  commission. 






Collier' b  Weekly 

4  pn.  in  ooloro  & 

5  1/3  pagos 



Sat.  Eve.  Post 

1  dhlo.  page  in 

2  colors 

2  flill  pages  & 


91/3  pagOB 


Aeso.  Sun.  Mags. 

1  B.C.  page  & 


11  1/4  pages 


Youth's  Comp, 

12  l/4  pageB 




1  B.C.  &  13.  pages 




14  page  s 




14  pageB 



MoCluro ' a 

1  B.C.  lc  13  pages 




1  B.O,  &  13  pages 



Rev.  of  Reviews 

14  pages 



Ladies'  Rome  Jml. 

8  l/4  pages 



Woman's  TTome  Comp . 

1  Cover  p.  & 

7  1/4  pagos 



Ladies  World 

8  l/4  pages 


2,801-.  20 


6  pages 



Argosy  ) 


All-Story  ) 

R.R.  Mens  ) 



Rod  Book  . 

8  pagos 




6  magazine  pages 




8  pagos 




6  pages 

,  175,000 


Paoifio  Monthly 

6  puges 




6  pages 

100,000  1 


World's  Work 

8  pages 



World  To-r>ay 

6  puges 




8.  pages 



Ainslee' s 

8  pages 




8  pafioa 

6  1/4  pages 



Human  Life 


Home  Magazine 

8  magazine  pages 



Butteriok  Trio 

1  page 




84  1.(9  times) 




84  L. (9  times) 



12,  9 88, OCXT  ' 

$124,490 .07 


OT  ?!0lra{T'Y  MAGAZINES  Aim 

national  .wbekeies:.' . 

Added  after  a  decision  was  reached  not  to  have  u'nowspapor  campaign. 


Ifo.  of  Ins. 




“  5  tines 

literary  Digest 



Leslie’s  Weekly 

5  times 


Scientific  American 

5  tines 

.  519.75 



6  pages 



4  pages 


Scribner.'  s 

4  pages 



4  pages 



Good  Housekeeping 

4  pages 




4  pages 


Popular  ) 

Smith's  ) 

4  « 

4  » 



'  1160.00 


■  l/page 


Blue  Book 

S  pages. 


•  280.50 


Quatcrly  Style  Book 

1  page 

■  990.00  — 

3, 16^, '231 

$10, '857 .15 f 



We  have  planned  to  run  a  400  line  advertisement. 

(  9  1/2*  deep  X  3  columns  wide)  in  eaoh  of  the  papers 
on  attached  sheet,  once  a  month  for  six  months, 
omitting  June,  July  and  August.  This  advertising  is 
beginning  in  the* latter  part  of  December  in  about 
half  of  the  list.  We  were  too  late  to  get  copy  in 
the  remainder  of 1  the  December  issues.  Those  will  be 
begun  in  January. 

The  cost  of  this  advertising  is  figured  out  on 
a  lino  basis.  The  cost  of  eaoh  publication  can  be 
had  by  adding  10^  to  the  line  rate  and  multiplying 
by  2400  lines  (400  lines  six  times). 



/  American  Agriculturist 
/  Orange  Judd  Parmer 
J  New  England  Nome stead 

V  Rural  New  Yorker 
Nat'l  Stockman  Sc  y  annex 

V  Parm  Sc  Ranch 
/  Ohio  Parmer 

/  Michigan  Parmer . 

<  Breeders  Gazette 
S  Hoards  Dairyman 
/Wallaces  Parmer 
Iowa  Homestead 
Parmers  Hail  &  Breeze 
</  Wisconsin  Agriculturist 
Indiana  parmer 
Oklahoma  Parmer 
Colman's  Rural  World 
20th  Century  Parmer 
Pield  &  Parra 


/  Farm  &  Home 
Southern  ALgrioulturist 
/  Home  &  Parm 
/  Southern  Ruralist 
Parm  &  Eire side 
/  Parmer 

s  Parm  Stock  &  Home 
/  Oklahoma  Parm  Journal 
Dakota  Parmer 
Ranch  , 

/Town  &  country  Jml. 

/  Greens  Fruit  Grower 
✓  Parm  Journal 
Southern  Planter 
Southern  Pruit  Grower 
/  Successful  Farming 
Nat.  Parmer  &  stock 


.  i  - - -  JJER  LINE 

Springfield,  Mass. 

New  York  City*  N.Y. 
Pittsburg,  Pa# 
Dallas,  Tex. 
Cleveland,  Ohio 
Detroit,  Mich.  ' 
Chicago ,■  Ill . 

Pt .  Atkin  son,  Wis . 
Des  Moines,  lac. 

Des  Moines,  la' 
Topeka,  fcans.  ' 
Racine,  Wis. 
Indianapolis,-  ind. 
Guthrie, ■ Okla. 

St.  roula,'  Mo  .  ' 
Omaha,  Neb.  • 
Denver,  Colo. 

100,000  . 
















Springfield,  Mass. 
Nashville,  Tenn. 
Louisville,-  Ky. 
Atlanta,  Ga. 
Springfield,  Ohio 
•St.  Paul,  Minn.  • 
Minneapolis,  Minn. 
Okla  City,  Okla. 
Aberdeen,  S.  D. 
Seattle,  Wash. 

San  Francisco, Cal. 























Rochester,  N.  Y.  129,583 
Philadelphia-,  Pa.  573,083 
Richmond,  Va.  20,000 
Chattanooga,  Tcnn.  36 j 418 
Des  Moines,  la.  313,804 

St.  Louis,  Mo.  104.666 


2400  line  s  (400  x6) 







$38, 265.61 



Wh  was  decided  not  to  have  a  newspaper  campaign. 

forhf  ivePmo^«  toJ*se  20?  }ln2?  7"  deep  two  00lumnB  wide' once  Sa  month 
for  five  months.  The  coBt  1b  figured  out  on  a  lino  basis.  To  <?et  the 

byS1000  adni°^  to  the  lina  rata  and  multiply5 

Dy  1000.  This  advertising  will  bo  given  in  Jtanuary. 





Western  Und  Daheim, 

Chicago,  Ill. 



Abendsohikle,St .  Louis, Mo. 



Deutsche  Am.  Farmer, 

Lincoln, Neb. 



Lincoln  Froio  Freese, 
Lincoln,  Neb. 



Staats  Zeitung,N.Y.City 



Morgen  Jrnl.,N.Y.City 



Deutsohe  Hausfrau, Milwaukee 



Haus  &  Bauornfreund,  * 



Germania,  Mil\mukee 




Skandinavian, Chicago , Ili. 



Kvinden  Og  Hj emmet , 

Cedar  Rapids, la. 



Tidende ,Minnoapo li s ,Minn . 



Danske  Pioneer, Omaha, Nobr. 




Svenska  Tribunen  Nyheter, 
Chioago,  Ill. 



Svenska  Amerikanaka  Posten 
Minneapolis,  Minn. 




Amerikan,  Chicago 



Osveta  Ame r ika , Omaha , 







Jewish  Courier,  Chicago 





Jewish  Forward,  H .Y. City 




L' Italia,  Chicago,  Ill, 







1000  lines 

equal  $3414.07 


'  E 

oowi'ox  TOSHiiEB  jam  swmior  magazine  sections  op  surowor  uww/amu;. 

Added  after  it  tno  decided  not  to  have  u  newspaper  campaign. 
'7n«tll‘>,?.ountr'V  «n«*lins  v;,!  have  already  run  a  400  line  advertisement 
*  *  */■*  docpjtay  3  coliitma  v/ide)  in  each  and  will  have  a  ,*200  line 
auvortirccijwmt  (7W  do«j>  by  *1  Qulur2nu  vide)  unco  a  non^h  until  Huy  inoluraiva# 

In  the  Jacobs  list  we  vrlll  nin  340  linos  once  u  nontii  until  hay. 

unt.UIn'avh<!  f!wnrtajf  Heotionn,  we  will  run  310  linen  once  tx  month 


coinrero  uugrLira 


Saturday  Globe 

Chriotlun  herald 



Hewn  Scimitar 

Commercial  Appeal 

Homo  Herald 

Appeal  to  Reu non 




Harm  Px’ogrosn 
Globe  Democrat 

Utley., ’'.Y., 
Willinneuort,-  l5a. 
How  York,  u.Y. 
Toledo,  Ohio 
Cincinnati,  Ohio 
Memphis,  Tonn. 
Memphis,  Tonn. 
Chicago,  Ill. 
Oerard,  Trims. 
Lincoln,  Hob. 
Kannna  City,  Ho. 
Kansan  City,  Ho. 
St.  Loui a 

Atlanta,  On. 


41  Southern  Religious  Papers 


140, 000 
209, 031 

+  +117,000 

2,  7 28,~32ff 

.  15130 

06.900 0  " 

Commission  6906 

1400  lines— $10,78(5.44 

378,074  1.723(5 

Connl union  1724 


1400  lines—  02730.00 


Illunt rated  Sunday  Hagaaino a  7:53,500 

Hearot'e  Am.  Sunday  Hugnnlnns  2,092,731 

United  Sunday  Kagaalnea  1,747,000 


■*■  Thin  circulation  io  twice  a  week— came  oopv 
+**  "  "  3  times  a  week  «  « 

1.(5068  1140  L.  $2049.89 

2.19378  18(50  L.  15040.84 
2.32  13(50  L.  3498.72 

'  08883,1b 


SomSKraS  S  ££,?“  mma  mw,ri< 






Plain  Dealer 





Pree  Preen 
Tree  Preen 

Mow  York,  jj.y. 

Philadelphia,  p«. 

Pittsburg  Pa. 

Cleveland,  Ohio 

Chicago,  Ill. 

Indianapolis,  ind. 

Buffalo,  u.Y. 

Kansas  city 

Minneapolis,  Hlnn. 

Milwaukee,  Vi». 

Detroit,  ;;ioh. 

Denver,  Col. 


1  <50, 000 
.  57,000 

,  M'POO  __ 


insAigg  kohday  macamihes 






J’ow  Yor5:,  !i.Y. 

Boston  huee 

Chicago,  in . 

Los  Angeles  cal. 

fian  Prenclrco,  gal.' 




-neffila — 



Con. Tribune 










Do spat oh 






Mew  Orleans 





Ot.  Paul 


Roche  utor 



















Po  nt 


Chicago,  Ill. 

Ot,  Louis  ITo. 

Pittsburg,  Pa. 

Philadelphia.  Pu. 

Rev;  York,  w  v 


Rocljy  hto. 













500'  ” 

S3  no,  ooo 


40.,  000 

Combined  total.. ,.5! 













Kansas  City 

Los  Angeles 




New  Orleans 

Now  York  City 


San  Eraftoi boo¬ 
st.  Louis 

S}.  Paul  ■ 














m  a. 







?.  Cal. 


D.c.  : 


























“£5  papers  included  in  Tin*  Jacobs  list  of  southern  religious 




Alabama -iGhristianeAdvocato 



Little  Rock. 

Weatorn  Mothodiot 

Baptiat  Advanco 

Arkansas  Baptiot 

The  Searchlight 


6,- SCO 



Christian  Indox 

Weal cyan  Chris.  Advocate 
Golden  Age 







Baptist  Flag 

Pentecostal  Herald 

Central  Methodist 





Now  Orloana 


Southweii torn  Preobyterian 
H.O.  Chriatian  Advocate 
Baptiot  Chronicle 






Balt.  Southern  Method ait 



Jack son 

The  Baptist  Record 







•  1T.C.  Chriatian  Advoodte 
Raleigh  Chriatian  Advocate 
Weekly  Messenger 

Biblical  Recorder 







Lutheran  Evangelist 

Herald  of  Gospel  Liberty 





Duo  XI oat 

Lutheran  Chruch  Violtor 

A.R.  Preabyterlan 

Baptiot  Courier 

Chriatian  Appeal 

Southern  Chriatian  Advooato 







Mart in 


Mcraphl e 



Primitive  Baptiot 

Baptist  &  Reflector 
(fospel  Advocate 

Jowl ah  Spectator 

Midland  Methodist 

Cumberland  Preo .Banner 











Texas  Baptiat  Standard 
Chriatian  Courier 

Pentecostal  Advooato 

Pirn  Foundation 








Baptist  Timoa 

Rellgioua  Herald 

I  2,500 
l!  8,000 




Western  Va.  Moth.  Advoo&te 
Baptiat  Banner 

/  0,000 
/  4,000 



1/15/09 . 

I  hand,  you  herewith,  letter  from  the  Thompson  & 

Norris  Co.  with  a  note  from  Mr.  'Edison  endorsed  thereon.  I  wish 
you  would  take  up  with  me  the  difference  in  prices  involved  in  this 


E.  L.  D, 


To  insure  prompt  attention  Address  All  Communications  to  the  Company. 

The  Thompson  &  Norris  Company, 


BROOKLYN,  Jan.  14th  1909. 

Dear  Mr.  Edison: - 

.  gmC  T 

-r  t(r  _ _ 

ohflotnff  +\  1  have  tofay  received'“ifrom^kr.  Deeming  (your  new  pur- 
we  havf  ffr"thp  a  r?q?est  for  »  revision  of  prices  on  the  packing  material 
to  a  +W°  year8  been  furni shing  the  Phonograph  Company,  and 

yK°  a  8raaTler  extent,  to  some  other  branches  in  which  you  are  interested 
Mr.  Leeming  states  that  he  has  received  more  favorable  quotations  from 

r^r?etit0rs<and  2hat  as  the  old  contract  has  been  oomoleted  he  ex¬ 
pected  lower  prices  from  our  Company. 

*  1  rf?ret  compelled  to  advise  him,  to  keep  up  the 

rIductionBin°thpa^r^  and  promptness  of  delivery  we  could  not  make  any 
I  dn  n  ?  i  68  already  quoted.  When  the  quotations  were  figured 

Lf?  believe  there  was  a  customer  out  of  eleven  thousand  on  our  books, 
that  received  more  favorable  rates  than  the  Phonograph  Company,  and  there 
is  tbs  °"e8}ngle  thing  entering  into  the  manufacture  of  our  goodB  that 
is  the  fraction  of  a  cent  lower  now  than  it  was  then,  and  semi  are  higher. 

+  ,  You  may  ,not  be  aware  of  the  fact  that  there  is  a  combina- 

tion  of  manufacturers  who  were  organized  for  the  purpose  of  getting  better 
s£s,^A’*-fnd  tha\£eca^Se  TV w?uld  not  Join  them  are  making  the  most 
absurd  figures;  the  object  being  evidently  to  force  us  to  reconsider  our 
refusal  to  become  one  of  their  members.  I  can  see  no  other  reason. 

Our  Company  has  expended  more  money  in  fixing  up  special 
^tn^eAy+and  a<  deParbment  for  the  Phonograph  work  than  has  Bofar  been 
returned  to  us  in  profits  from  the  business. 

...I  feal  sure  ft  one  thing  -  that  is,  that  we  have  not  a 
®d“Sle  °°1 ”5* e-tdtor  wh°  fan  give  you  .  the  service  that  we  can.  I  have  per- 
sonally  had  charge  of  this  special  business  for  you  and  have  been  as  loyal 
ta  y°u  in  every  thing  connected  with  it  as  I  have  been  in  other  things  * 
which  you  are  in  a  position  to  know  more  about  -  so  without  further  6 
2b  y?U’  I1wi8h;y°u  would  in  your  own  good  way  tell  Mr. 

1  2s  °n2y  dolns  hls  duty  aa  he  understands  it,  to  renew 

the  contracts  which  have  been  completed. 


Thomas  A.  Edison 

Jan.'  14th  1909.  -  2  - 

Our  Company  has  answered  Mr.  L.  to  the  effect  that  we  can 
now  do  no  better  than  we  have  done  in  the  past. 

I  hate  "like  the  Dickens"  to  being  this  little  matter  before 
you,  but  I  could  see  no  help  for  it. 



Mr.  Harry  p.  Miller: 




I  hand  you  herewith  letter  from  Mr.  Aylsworth 
asking  for  an  additional  advance  on  the  amount  to  he  paid  him  for 
hi3  patents  when  the  Amberol  record  waB  successful,  also  a  note 
from  Mr.  'Edison  explaining  his  present  understanding  of  the 
arrangement.  I  think  you  had  better  keep  these  for  future  refer¬ 
ence,  in  case  the  question  ever  comes  up  again.  Mr.  Edison  has 
endorsed  on  Mr.  Aylsworth's  letter  a  note  to  pay  him  an  additional 
$5, 000; 00  on  account  of  the  patents,  and  I  wish  you  would  make 
arrangements  with  Mr.  Edison  to  have  this  done.  The  money  will 
he  paid  hy  the\  New  Jersey  Patent  Co.  E.  I>.  P.  Enc- 



Technical  Chemical  Expert. 



v  / 

rsw  ^ 

(JaA ^VS.  W*.aV-e-  ££-c  (Le<^-e.  *» 

?"***>  ^  .^-WiJL, 

tZ*t>c<yz^Zr  ?  ^Lx-cs-t 


{ - ! _ __i _ 

_ ILfc,  <  0 

.kfl- _ IQ  £><?«>.  j ._ 

lu>o>S  .ft-t^tov-aLlo 

ec-C/Lr ■>=•  llu>-4^*pL^ 
_ r«=ri7«^w^. _ I(m~  ^AA-lgwCg..  Q~^J 

(jrtfc^  J  CD^u(S2rr?.LL 

_ (  iuLB-^fe^  %e>  c*-o~fcb  &1g  &4&,£J2%LJLl 

'p/^LC-n  ,  -  CL&JJ-Z.'Ch.a. 

Jan.  18th,  1909, 

I  attach  a  schedule^showing  the  advertising  done  hy 
the  Edison,  Victor  and  Columbia  Companies  in  the  December 
weeklies  and  the  January  monthlies. 

The  amount  given  in  the  Edison  column  does  not  correspond 
with  the  list  sent  you  a  month  ago, for  the  attached  list  gives 
the  gross  rates,  while  the  previous  one  was  effected  by  the 
Agency  arrangement,  •  . 

This  list  shows  practically  all  the  advertising  done  by 
the  three  companies  in  thiss  class  of  medium.  It  does  not, 
of  course,  include  the  advertising  done  (by  the  Victor  Company 
in  newspapers  nor  that  done  by  the  Victor-1-.-  Company  and  oua« 
selves  in  Farm  papers  and  Company  weeklies. 

Yours  very  truly, 

McCA  L.G.  McChesney. 


.  Aa.cjQj.5un.Muga.  _20th 
ChriB.Harald  .  .  «).th 

Collier  *  a  ....  2nd 

Judge.  ... 

Leslie’s  .  -junai.  isua  u. 

-Life  , . -  . 

Literary  Digoofc  12th  224  Lines 


-l/d"  J\  500,00 

400  L.  400.00  lGth-Rack  Cov.1000.00 

3  color  P.24-10.00 




.  .lQth-Wafj.Pago  134.40 

2Gth  1/2 
24th  1/4  Page 

.  Outlook 

■  Scientific  Am.  19th  140  Linea  10U.00 
Sat. Kvo  .Post  , 

{  Youth's  Comp . 

aii-Stdry  ) 

Arfcosy  )  Argosy  Combination  • 

-R.R.Kwi'-o  ) . . -  ' . .  . 

1  -Ain -loo's)  - .  . 

Popular  )Smith  CVeh)  Pugo 
--{Smith's-  )Trio.-,(.Pob) ....  ....... 

— Delineator) - - - -  - -  - 

. Designer--)  -  But  t  erick-Trio . - 

;  —2fev7  Idea  -)- - -  -  . 

f;  —Blue  -Bouki- 

:-  Rod  Book  -  )•  -  -  - . - . 

American  Page . 

-  Bohemian 
-—Century  — 

.  Pugu 

_  Page  552.30 

_ _  Pugo 

_ "'..Pugg  .  ", 

PugO  540.00 

- _ puee  _;._z 

2  Pages  80G.40 

P  ago  302.77  2.  Pages  500.00 

Page  10G.00 
__i.2j?agt!  8I37S  .00 

(2)Pugos  805.40  2  Pugea 8Ot5.'40” 

.  .  . . .  Hag.P.158.00  ; 

. . •_ _ _  (2)Pfigos  128.00-  _ _ 

1000.00  . . (2)pagesl000.00  2"  Pages  1000.00 

_  Page  22!>. 00 _ _ 

Pack  CovOOOO .00 

:  i/2iPi«£P  .9.50^ m.  : 

(2)Pagos  828.00 

2  Pages  450.00 


Country  Life — - 

Currant  r,it. - 

:  Everybody's  Page 

-  .Good-  Housekeeping . -  - . -  - - - -  ---- 

Hampton* b . —  - . - . . .  ------ .  .  - . 

Harper's  -  - 

--Ladle  b*  Home— Jl«- . — -  - i - 

-.  Ladles’  World . .  . — . - — •  - 

. McCall's - — . — l/il-V-HRH - U5Q..00— 

KcClure's  -  Pugo  414.00- 

-  -  Metropolitan : - - - — ~ — - — - -  _ _  _ _ 

— Mun-sey*  3 - - : - Sack - Co v.  2000.00 - tg).PagonlQ00  .00  2  Pago  a  1000.00 

-  Hftt ional  — ----- . - - - - - - 1 - —__Pago_._17q.00 _ - _ _ _ ■  -V 

-  -  Outing  —  —  - — — - - - - — , — - - - — : - _ I _ _ _ ,  1  '  _ • 

-  -  Overland . — -  - - - - - : — - j_ _ _ 

Pacific  - -  - - - JP-«gfl_._llp..Bp _ .  _ ;. ... 

)  -  Pearson'-s - — -  .  -  Pago - 172.12 1- - : — : : - 1 _ :  _ — 

S-  Rev. of  Reviews  -  -  Page  225.00  - 2ndCoy. 225,00 _ 

!  ,  Scribner's  -  - Page - 225.00  — .  ( 2) PUges ,450.00 

i<i  Style  -  Book -Ho  .  - 

■--Success— - 

— r'Shnsfi-t— - 

jV  —Tech  .-World- . — 

N -Theatre- Hag.,- - 

'Uncle  Remus';  - 
Van  Orden's 
-Woman*  as -rrome  -< 

>  4'4G.OO 

l/4  Page  lflO.fioG 

Harupagc  112.00  _ .  ;  ~ 

-  World's  Work - 

World -To-Day . 

"  ylsyOT.TTT'  3  r~- t 

Referring  to  factory  schedule  for  machine! 
a0^cf1?-ed  for  ln  “y  mem0»  dated  Jan.  12th,  please  ii 
schedule,  as  follows; 

,  PHONOGRAPHS ;  Carry  500  in  Btook  ready  for  shipment, 

and  500  more  in  testing  department  ready  to  he  delivered  to 
stock  room  when  required*  Carry  finished  parts  in  stock  Buffi^ 
oient  to  assemble  1,000  machines,  hut  go  slowly  on  such  parts 
as  may  He  changed  when  the  combination  machine  1b  adopted.  Base 
assembling  on  shipments  made  during  previous  week. 

STANDARD  PHONOGRAPHS  MODEL  "Cs  Carry  500  in  stock  ready 
+o  «?nivment’  a?d  500  i?  *eBtinS  department,  ready  to  he  delivered 
T°?m  when  r«9ui»»d.  Carry  finished  parts  in  stook 
sufficient  to  assemble  2,000  machines.  Base  assembling  of  machines 
on  shipments  made  during  the  previous  week. 

STANDARD  PHONOGRAPHS J  MODEL  "D“;  Carry  1,000  in  Btook 
ready  for  shipment,  and  1,000  in  testing  department,  ready  to  be 
delivered  to  stock  room  when  required.  Carry  finished  parts  in 
stock  sufficient  for  5,000  maohines.  Base  assembling  of  machines 
on  shipments  made  during  the  previous  week. 

HOME  PHONOGRAPH,  MODEL  "B";  Carry  150  in  stook  ready  for 
shipment,  and  100  in  testing  department,  ready  to  be  delivered 
to  stook  room  when  required.  Carry  finished  parts  in  stock 
sufficient  to  assemble  1,000  machines.  Base  assembling  of 
machines  on  shipments  made  during  previous  week. 

HOME  PHONOGRAPHS,  MODEL  »C°:  Carry  25  in  stock  ready  for 

shipment,  and  25  in  testing  department,  ready  to  be  delivered 
to  stook  room  when  required.  Carry  finished  parts  in  Btock 
sufficient  to  assemble  250  machines.  Base  assembling  of  machines 
on  previous  weeks  shipments. 

HOME  PHONOGRAPHS,  MODEL  "D";  Carry  1,000  in  stock  ready 
for -shipment,  and  1,000  in  testing  department,  ready  to  be  del¬ 
ivered  to  stock  room  when  required.  Carry  finished  partB  in  stook 
sufficient  to  assemble  5,000  machines.  Base  assembling  of  maohines 
on  previous  weeks  shipments. 

TRIUMPH  PHONOGRAPHS,  MODEL  "B":  Carry  25  in  stook.  Base 

assembling  and  finished  parts  on  previous  week's  shipments. 

TRIUMPH  PHONOGRAPHS,  MODEL  °C»;  Carry  10  in  stook  ready  for 
shipment,  and  10  in  testing  department,  ready  to  be  delivered 
to  stock  when  required.  Carry  finished  parts  in  Btook  sufficient 
to  assemble  100  maohineB,  Base  assembling  on  previous  week's 



TRIUMPH  PHONOGRAPHS,  MODEL  "D* :  Carry  100  In  etoak  ready  for 

ehtpment,  and  1.00  in  testing  department,  ready  to  te  delivered 
to  stock  when  required.  Carry  finished  parts  in  stock  sufficient 
to  sink  to  assemble  1,000  maohineB,  Hass  assembling  on  previous 
week's  shipments, 

STANDARD  ATTACHMENTS : •  Discontinue  assembling  altogether 
until  present  stock  of  finished  attachments  is  reduced  to  5,000, 
Then  base  assembling  on  weekly  shipments.  Carry  finished  parts 
in  stock  sufficient  to  assemble  10,000  machines, 

HOME  ATTACHMENTS:  Discontinue  assembling  altogether 
until  present  stook  of  finished  attachments  is  reduced  to  5.000, 
Base  assembling  on  weekly  shipments.  Carry  finished  parts  in 
stook  sufficient  to  assemble  10,000  machines. 

TRIUMPH  ATTACHMENTS:  Discontinue  assembling  altogether 
until  present  stock  is  reduced  to  500,  Base  assembling  on  weekly 
shipments.  Garry  finished  parts  in  stock  sufficient  to  assemble 
2,500  machines. 

REPRODUCERS,  MODEL  "C":  After  providing  for  all  machines 
complete  except  reproducers,  we  have  a  stock  of  ifaftkd  10,472. 

This  is  sufficient  for  present  requirements,  therefore,  the 
quantity  to  be  gotten  out  weekly  should  be  based  on  shipments, 
so  that  the  quantity  in  stook  oan  be  kept  up  to  about  10,000. 

REPRODUCERS,  MODEL  “H" j  After  providing  for  all  machines 

and  attachments  oomplete  except  reproducers,  we  have  a  stock  of 
9979.  This  is  sufficient  for  present  requirements,  therefore, 
the  quantity  tp  be  gotten  out  weekly  should  be  based  on  shipments 
so  that  the  quantity  in  stook  oan  he  kept  up  to  abont  10,000. 

In  arranging  to  carry  and  accumulate  the  different  quantities 
of  machines  and  attachments  above  specified  for  stook,  the 
quantities  already  in  stock  should  be  taken  Into  consideration, 
and  if  there  are  more  in  stook  than  the  number  called  for,  no 
more  should  be  assembled  until  stook  is  reduced  to  quantities 
specified,  or  if  there  isa  less  quantity  in  stook  than  oalled  for, 
only  a  sufficient,  additional  number  should  be  assembled  to  bring 
the  total  quantity  up  to  the  number  specified.  As  quantities 
called  for,  to  be  kept  in  stock,  Are  reduced  by  weekly  .ship¬ 
ments,  additional  ones  should  come  through  to  keep  the  stook 
up  to  the  specif led  number. 

1/29/09.  C.H.  Wilson. 

Copies  to  Messrs ,  Dyer:  Hird:  Zaremba: 

I  beg  to  report  to  you  in  regard  to  my  trip  to 
Camden,  N.  J .  and  Philadelphia,  Penna.  on  January  28th' and  29th, 
1909,  as  per  your  instructions. 

The  Victor  Talking  Machine  Company,  Camden,  N.  J., 
are  now  working  54  hours  a  week  (  7:00  A.  M.  to  12  noon,  and 
12!30  P.  M.  to  5:15  P.  M. )  Mondays  to  Thursdays  -  9-3/4  hours 
per  day.  Fridays  10  hours,  and  Saturdays  5  hours.  They  are 
employing  781  people. 

At  the  office  of  the  Company  I  was  told  that  I  came 
at  a  very  had  time  to  lock  over  their  plant,  as  this  was  one  of 
the  dullest  months  in  the  year,  and  a  large  number  of  their  em¬ 
ployees  were  taking  a  much  needed  rest  (for  a  few  weeks  or  a  month) 
as  they  were  working  very  hard,  day  and  night.,  during  the  month  of 
December,  as  they  were  hardly  able  to  fill  their  orders  for  holiday 
machines  and  records.  At  the  present  time  they  are  unable  to 
fill  their  orders  for  Victor  Victrolas  (the  $200. 00. machine)  on 
account  of  their  Cabinet  Department  being  so  much  behind  with  their 

They  said  that  their  business  was  now  very  quiet 
in  regard  to  their  other  makes  of  machines,  as  their  dealers  are 
pretty  well  stocked  with  the  $10.00,  $17.50,  $25.00,  $30.00  and 

$40.00  machines,  as,  during  the  last  year,  they  have  not  been 
putting  out  machines  and  records  on  the  installment  plan  as  they 
were  doing  previous  years,  hut  were  devoting  more  of  their  time 
to  the  higher  priced  Victor  goods,  and  making  cash  sales  to  the 
people  who  had  the  money  to  spend  to  entertain  their  friends  at 
home  during  the  evenings. 

She  Victor  Company  is  now  catering  to  the  educated 
people  of  the  country,  who  are  fond  of  music,  and  are  willing  to 
pay  for  the  best,  and  there  is  no  other  Talking  Machine  Company, 
or  Phonograph  Company,  who  have  the  class  of  records  to  put  out 
that  will  stand  the  test  the  same  as  the  Victor  Company  have  and 
are  putting  out. 

They  were  explaining  to  me  the  difference  between  the 
recording  done  by  the  Victor  Company  and  the  recording  done  by  the 
Edison  Company.  They  said  that  the  pdison  Company  was  selling  a 
number  of  phonographs  and  records  in  the  small  towns  and  country 
places,  as  they  were  making  records  of  the  popular  selections  and 
catering  to  that  trade,  but  when  the  hard  times  struck  the  country, 
a  year  ago,  the  Edison  Company  had  nothing  in  the  way  of  records 
to  offer  other  than  their  popular  selections,  and  the  business  must 
have  fell  off  considerably  in  the  large  cities  when  a  number  of 
people  were  out  of  work  and  others  working  but  half  time. 

They  said  the  hard  tinies  had  no  effect  on  their  sales 
during  the  last-  year;  they  did  not  sell  as  many  of  their  popular 
priced  machines  as  they  did  the  year  before  but  their  sales  of 
Victor  Victrolas  and  Victor  Auxetophones  (their  higher  priced 
machines  and  records)  they  were  unable  to  fill  their  orders  for 
them,  and  they  are  behind  on  their  orders  now.  It  will  take  them 
2.  ‘ 

a  considerable  length  of  time  to  fill  the  orders  they  now  have  on 
their  hooks  for  Victor  Victrolas. 

They  said  that  during  the  past  few  years  their 
business  had  increased  to  a  marvelous  extent,  as  they  were  doing 
more  than  65^  of  the  business  now  done  in  the  cities  in  the  country, 
as  the  wealthy  people,  who  are  educated,  have  acquired  a  taste  for 
high  class  musical  and  operatic  selections,  and  are  now  purchas¬ 
ing  Victor  machines  and  records*  They  have  records  by  renowned 
musicians,  and  the  greatest  operatic  stars,  which  no  other  Talking- 
Machine  Company,  or  Phonograph  Company,  are  putting  on  the  market* 

They  said  to  go  into  the  marvelous  growth  of  the 
Victor  Talking  machine  Company,  and  the  business  Which  they  have 
built  up  during  the  last  eight  years,  from  a  very  small  beginning 
to  the  largest  and  best  Talking  Machine  Company  ir.  the  world, would 
show  that  their  plant  in  Camden,  IT.  J"*,  is  the  most  complete  plant 
i  n  the  world, and  with  the  machinery  and  special  machines  which  they 
have  in  their  buildings  for  tuning  out  their  machines  and  records, 
is  valued  at  nearly  $6,000,000.00,  and  the  story  of  the  Victor 
Talking  Machine  Company's  success  in  putting  a  luxury  on  the  market 
is  marvelous,  and  the  poeple  who  purchased  stock  eight  or- ten:  years 
ago  are  well  satisfied  with  their  investment.  The  business  is 
increasing  each  year  with  them,  and  as  they  have  no  competition  to 
speak  of,  the  prospect  looks  bright.  I  inquired  of  them  what 
effect  the  cylinder  business  would  have  on  their  trade  if  the  Phono¬ 
graph  Companys  would  put  on  the  market  the  same  class  of  records 
that  they  are  now  putting-  out.  They  said  they  did  not  think  the 
Phonograph  Companys  would  pay  the  talent  the  amount  of  money  that 
they  would  ask,  and  as  most  all  the  famous  artists  are  now  under 

contract  with,  the  Victor  Company,  they  do  not  see  whom  they  could 
get  to  make  records  for  them  that  would  compete  with  the  famous 
operatic  stars  who  are  now  under  contract  with  their  Company,  such 
as  carUBO,  Calve,  Tamagno,  and  others.  I  was  also  informed 
that  they  paid  Caruso '$45, 000.00  last  year  for  commissions  on  his 
records  that  they  sold,  and  during  the  year  1909,  the  Victor  Co. 
are  going  to  make  a  big  cut  in  their  magazine  arid  newspaper  adver¬ 
tising.  The  money  taken  from  the  Advertisement  Department  is  going 
for  extra  high  class  .talent,  as  there  has  been  such  a  demand  during 
the  last  year  for  their  high  class  records  that  they  think  it  will 
pay  them  to  get  the  best  that  money  can  purchase. 

They  said  they  have  spent  considerable  money  during 
the  last  few  years  advertising  their  machines  and  records,  and  the 
Victor  goods  are  now  well  known  in  all  parts  of  the  world,  so  they 
do  not  fear  competition  from  any  others  who  are  now  in  the  business. 

I  was  then  introduced  to  the  guidfwho  was  to  show  me 
through  the  manufacturing  departments  of  their  plant.  Ho  visitors, 
they  said,  were  allowed  in  their  Recording  Department,  as  that  was 
one  of  the  secrets  of  the  business.  We  went  from  the  office  to  the 
buildings  across  the  street,  which  were  numbered  1,  2  and  3,  and 
the  guid  said  that  they  were  employing  now  nearly  1,000  people  in 
and  about  the  plant.  He  said  that  there  were  a  number  of  their  em¬ 
ployees  now  taking  a  vacation  on  account  of  business  being  very 
quiet,  as  this  was  their  dullest  time  of  the  year  in  the  business, 
and  that  about  February  15th  things  would  begin  to  improve  with  them 
We  entered  the  Mixing  Room  on  the  first  floor,  where 
they  have  four  steam  rollers  which  the  material. for  the  records  go 
through.  The  guide  informed  me  that  the  material  was  mixed 


in  their  building  on  the  other  street,  and  brought  over  from  there 
to  go  through  the  steam  rollers,  where  the  material  was  rolled  out 
flat,  and  from  there  to  a  stamping  machine,  where  it  was  stamped 
and  baked,  then  broken  into  squares  of  the  required  size  and  taken 
up  to  the  press  room  on  the  second  floor.  There  were  four  steam 
rollerB,bu.t  only  one  was  in  operation,  and  one  stamping  machine. 

On  the  second  floor,  vtfiere  their  press  room  is  locat¬ 
ed  and  where  the  records  are  made,  polished  and  put  into  envelopes, 
they  are  also  packed  in  boxes  containing  twenty-five  records. 

While  in  the  record  or  press  room  I  counted  a  hundred  and  twenty- 
two  presses  that  were  in  operation.  They  were  making  single  records 
at  the  time  of  my  visit  to  the  room.  I  wanted  to  see  them  making 
the  double  disc  records,  as  that  was  what  I  came  over  from  Phiiade- 
phia  especially  to  see  made,  but  they  were  working  on  an  order  for 
single  disc  records. 

The  Third  floor  is  where  they  do  their  grinding. 

The  fourth  floor  is  where  they  do  all  of  their  nickel  plating 
and  poliching. 

In  the  machine  Department  things  looked  very  quiet. 
There  were  a  number  of  stamping  machines  not  in  operation,  and  a 
number  of  other  machines,  such  as  drills,  screw  machines  and  planers, 
not  running. 

They  have  a  special  department  where  they  make  and 
test  the  motors  of  their  Auxetophones.  The  motors  which  they 
use  in  their  Auxetophones,  they  said,  were  manufactured  by  the 
Y/estinghouse  Company.  In  the  motor  Department  each  employee  has 

a  special  part  of  the  work  to  do,  and  if  there  is  anything  wrong 
with  the  motor,  they'  know  v/ho  is  at  fault. 


The  guide  that  went  with  me  through  all  the  Departments  of  the  plant 
was  well  informed,  and  acquainted  In  all  the  Departments  of  the 
Factory,  hut  he  would  not  say  what  their  output  was  at  the  present 
time ,  In  regard  to  the  number  of  records  they  were  turning  out 
daily,  he  was  unable  to  say  if  it  was  five  or  fifty. records ,  as 
the  number  turned  out  daily  depended  upon  the  orders  received  for 
them.  Sometimes  things  were  quiet,  as  at  the  present  time,  and  again 
they  were  rushed  with  orders  to  be  gotten  out  in  a  hurry. 

In  regard  to  the  number  of  machines  they  were  turning 
out  daily:  I  could  get  no  satisfactory  answer  as  to  the  output  at 
the  present  time. 

When  we  entered  the  first  room  in  the  building  I 
began  to  count  the  number  of  employees  who  were  working  in  the 
different  rooms  which  we  entered,  and  after  going  through  all  the 
departments  in  buildings  1,  2  and  3  I  found  that  my  counter  had 
registered  732  employees. 

At  52.15  P.  M.  I  was  at  the  building,  corner  of  Front 
A  linden  Sts.,  where  their  shipping  department  is  located,  and  where 
the  motors  are  put  into  the  cabinets;  also  their  general  repair 
department.  I  counted  49  employees  leaving  that  department,  mak¬ 
ing  a  total  of  781,  and  I  do  not  think  I  missed  any  in  the  several 
departments  that  I  went  through.  I. did  not  get  the  number  of  em¬ 
ployees  working  in  the  Cabinet  Department. 

i^eoJcat  -  yr\-0~v^.  ( 

_ 1  '  W'' l9of 

%  A^nt  «ra^  it-i^  4C=f-tu — 

u  ~  J^-nuU,  -  cu  ^'—rri  333 

1  ^  ~a~±  1— -r-r  *-*■ 

Dear  Mr.  Edison;-  lU-*-**—-4^  *£  ua>=w  *-  _  y 

r  teivm 

1.  Ftbb.MA 

l  hWMfcLPYEB^ 

The  follovdng  is  a  copy  of  a  letter  received  from  J.  H, 
Spitlsr,  Edison  Dealer,  at  Bradford,  Ohio: 

"Bradford,  O.iTan.  31st,  1909. 

Edison  Phonograph  Co., 

Dear  Sirs;- 

Permit  me  with  all  the  vehemence  that  in  me  lies,  to  enter 
my  protest  against  omitting  the  Announcement  on  Edison  Records, 
One  of  the  grand  features  in  Edison  Records  over  all  other 
makes  has  been  that  you  could  always  kno what  you  were  listen¬ 
ing  to  -  How  the  busy  Dealer  will  have  to  waste  much  precious 
time:  answering  the  questions,  "What  is  that?"  "What  Tune  was 
that?"  What  is  the  name  of  that  Record"  and  hundreds  of  other 
similar  questions;  Again  many  persons  have  formed  the  habit 
\  of  "taking  down"  the  names  of  Records  as  they  he  a  them  and  somfe 

\  time  they  expect  to,  and  do  huy  Records  they  thus  heard  played. 

V  I  protest  for,  many  of  my  customers  also: 

\  ^  The  label  on  die  lid  of  the  Box  is  just  die  thing  needed, 

/  many  of  my  customers  appr  eciate  that  ib  w  departure.  You  might 
/  omit  "Edison  Record, "  and  no  one  know  the  difference  as  Edison 
(  Records  are  so  superior  that  people  would  know  they  were  listen- 
/  ing  to  Edison  Records. 

[  No  plain  "liar"  need' tell  my  customers  that  Amberol  Records 

}  are  not  a  Great  Big  Success  -  I  shall  not  order  any  more  "Old 
I  Style  Phonographs  unless  by  direct  request  of  tie.  Customer  -  I 

V  expect  to  equip  many  machines  with  new  attachments-Have  done  so 

\  to  the'  first  Standard  I  sold  and  h aye  many  promises  for  the 
\  future.  " 

Your  s  vs  ry.  truly  , 

B.  C,  IlcChesney. 

Frank  L.  3yer,  Esq., 

Pres.,  National  Phonograph  Co 
Orange,  N.  J. 

My  dear  Mr.  Dyer:- 

I  am  continuing  the  efforts  which  I  have  taken  on  my 
own  initiative  to  effect,  If  possible,  a  settlement  of  the  pending  litiga¬ 
tion  between  the  New  York  anti  other  phonograph  companies  and  the  Edison 
interests.  If  an  offer  of  $.175,000  and  an  agreement  by  the  Edison  in¬ 
terests  to  waive  any  payment  from  that  sum  on  account  of  stock  held  by 
them  would  be  entertained,  I  might  succeed  in  connection  with  the  pro¬ 
position,  which  I  have  in  mind,  of  obtaining'  a  stun  net  exceeding  $25,000, 
in  order  that  Mr.  Andem  should  realize  on  the  settlement.  The  expenses 
of  the  litigation,  which,  under  his  contract,  must  be  borne  by  him,  have 
been  so  enormous  that  there  seems  to  be  but  little,  if  any,  margin  for 

Of  course  I  understand  the  position  taken,  hut  it  is  my  endeavor 
to  work  out,  if  possible,  a  preposition  which  I  can  submit,  to  both  sides 
with  some  hope  of  success.  Although  not  much  encouraged,  I  shall  continue 
the  effort  until  it  is  evident  that  the  effort  is  useless  or  until  it  is 

p.s.  31^ 

Very  truly  yours. 



(buzz'd  -  7?Ca 

Mr.  Dyer  Smith: 


ill’.  Edison  la  speaking  to  mo  about  trie  new  appli¬ 
cations  on  shellac  record  compoai  tions.  m.-tuo  it  clear  that  he  wants 
to  cover  two  separate  things.  As  j.  understood,  him,  one  is  the 
composition  in  which  shellac  is  dissolved  in  a  solid  solvent 
such  an  naphthalene  or  stearic  acid,  the  proportions  being  such 
that  tor  solid  solvent  will  cryotuliac  and  practically  separate 
.iron  the  so  line  no  that  the  rocord  surface  is  pare  uh'llac. 

The  other  is  a  true  mixture  oi*  shellac  dissolved  in  a  solid  solvent 
under  heat,  the  proportion  oi  the  shcliao  being  very  much  higher, 
than  in  the  first  case.  Such  material  is  moulded  and  chilled 
like  any  record  composition. 

I  hand  you  herewith  the  first  application,  which  wants  to  be 
corrected,  and  I  promised  Kr.  'Edison  to  let  him  have  both  tomorrow 

KD/iW  p.  D. 

PJk&tv 'faatJl' 



'  ^ 

'  / 

■  with  my  suggestion  of  yesterday  to  you 
relieving  statement  cf  the  negotiations 
bring  about  a  settlement  of  the  jiendlng 

3’rank  L.  Dyer,  Esq. , 

Pres.  National  Phonograph  Co., 

Orange,  N.  J. 

My  dear  Mr.  Dyer:- 

Xn  aooordanc 

over  the  telephone,  I  write  the 
undertaken  by  me  in  an  effort  to 
phonograph  litigation. 

I  have  seen  Mr,  Tomlinson  tc-day  and  again  discussed  the 
matter  with  him  and  with  Mr.  Tompkins.  The  natter  can  be  adjusted  I 
believe  for  $175,000  in  addition  to  £25,000,  making  a  total  cf  $200,000 
to  be  used  as  heretofore  stated,  excepting,  however,  the  suits  brought 
and  prosecuted  in  the  State  Courts  of  New  York  by  Ur.  Hyman,  I  have  can¬ 
vassed  the  situation  so  thoroughly  and  from  so  many  points  of  view,  that  I 
believe  no  better  settlement  to  be  possible,  and,  in  my  opinion,  the 
settlement  is  one  which,  for  many  reasons,  should  be  made  by  both  sides. 

Of  course,  as  T  have  heretofore  stated,  in  expressing  any  opinion  with 
regard  to  the  advisability  of  settlement,  X  feel  sure  that  you  will  take 
into  consideration  the  fact  that  I  conducted  the  complainants 1  side  of  the  for  so  many  years.  You  and  Mr.  Buckingham  knew  thoroughly 
all  the  points  of  the  defendants'  side. 

One  reason  why  it  is  not  possible  to  settle  the  litigation  upon 
more  favorable  terms  to  your  Company  is  that  the  figures  would  be  so  low, 
in  view  of  all  the  circumstances,  that  it  would  be  to  the  interest  of 
Mr.  Andem  and  the  New  York  Company  especially,  to  take  their  chances  cf 
a  greater  success  rather  than  to  accept  a  settlement  less  favorable  than 
that  above  stated.  For  this  reason  nothing  less  will  be  considered.  It 
is  sain,  and  I  belisve  correctly,  that  it  will  be  next  to  impossible 
hereafter  to  obtain  the  consideration  Of  so  favorable  a  preposition  of 
settlement.  In  view  of  the  very  large  amount  heretofore  talked  of  as  the 
probable  outcome  of  the  litigation,  the  present  figures  are  conservative* 

What  I  have  in  mind  is  the  payment  of  $150,000  to  the  New  York 
Company  and  $25,000  to  the  other  companies  represented  by  Mr.  Andem,  and, 
in  addition,  the  payment  of  $25,000  to  Mr.  Andem  as  indicated,  making  a 
total  of  $200,000.  Mr.  Tomlinson  criticises  the  payment  of  any  uart  cf 
the  $175,000  to  the  other  companies  and  believes  that  it  all  should  be 
paid  to  the  New  York  Company.  This,  however,  would  not  in  . all  probability 
meet  your  views,  and  I  believe  that  $25,000  paid  to  the  other  companies 
would  be  such  a  consideration  as  would  enable  Mr.  Andem,  under  his  con- 
tracts,  to  give  valid  releases  and  to  cause  the  suits  to  b.e  discontinued. 

-  -4.  4.  wi;P\  regard  to  Mr.  Hyman,  he,  as  you  know,  has  very  large  ideas 
ana  it  is  not  believea  that  it  is  possible  to  obtain  from  him  an  agreement 
to  accept  any  reasonable  sum  as  a  compensation  for  his  services  upon  a 
settlement.  It  is  proposed,  however,  to  ascertain  from  him  whether  if 
a  settlement  can  be  effected,  he  would  be  willing  to  accent  $20,000  or 
$25,000  in  full  satisfaction  and  to  consent  to  the  entry  of  orders  dis¬ 
continuing  the  New  York  State  Court  suits.  Mr.  Tomlinson  is  to  make 
this  inquiry  through  Mr.  Andem  to-day  or  to-morrow  and  is  to  let  me  knew 

F.  h. 

Feb.  15/09. 

the  result.  In  the  event  of  Mr.  Hyman's  willingness  to  accept  said  sum, 
then  that  amount  would  have  tc  he  provided  in  addition  tc  the  amounts 
above  specified;  hut  in  the  event  of  Mr.  Hyman's  unwillingness  to  accept 
such  a  sum,  then,  if  a  settlement  is  to  he  made,  it  would  have  tc  made 
in  such  manner  as  to  leave  Mr.  Hyman's  compensation  to  he  determined  hy 
fifty  per  cent,  cf  the  amount  which  he  might  succeed  in  recovering  in  the 
State  Court  suits  against  the  dealers.  Should  Mr.  Hyman  fail  in  the  Court 
of  Appeals,  that  would  he  an  end  of  his  claim;  should  he  succeed  in  the 
Court  of  Appeals,  there  are  other  reasons  why  he  could  not  recover  any¬ 

Of  course,  a  release  hy  the  New  York  Phonograph  Company  would 
free  the  National  and  other  Edison  Companies  from  ar.v  possibility  of 
interference  with  future  business.  The  National  Company  being  free  to 
do  business  within  the  State  of  New  York,  every  dealer  would  he  free  to 
carry  on  business  in  the  future  and  Mr.  Hyman's  claim  would  necessarily 
he  limited  to  past  damages  or  profits. —  c.  z.  £~a ~C&c^ 

A  settlement  upon  the  foregoing  plan  presents  many  obvious  ad¬ 
vantages  as  follows ;- 

First.  The  amount  recoverable  in  the  federal  court  upon  the 
accounting  in  the  New  York,  and  the  costs  of  the  suit  and  of  the  ac¬ 
counting  would  be  satisfied.—  So^o 

tiL*.  SC^icc  '  O  / 

Second.  The  future  business  cf  the  Edison  Companies  will  be 


Third.  The  great  legal  expenses  heretofore  incurred  ’will  be 
ended,  except  so  far  as  it  may  be  necessary  to  appose  Mr.  Hyman. 

Fourth.  Any  future  expense  in  changing  the  methods  of  manu¬ 
facture  to  avoid  patented  inventions  will  be  unnecessary. 

Fifth.  The'  possibility  of  the  Circuit  Court  of  Appeals  holding 
that  tha  contract  rights  cower  phonographs  and  supplies  irrespective  of 
patents,  would  be  avoided. 

Sixth.  Judge  Hazel's  preeent  favorable  decision  will  stand. 

Seventh.  Bonds  exceeding  $160,000  in  the  federal  court  will  be 


Eighth,  No  further  bond  could  be  secured  in  any  suit  pending  in 
the  state  courts  because  the  right  to  do  future  business  would  be  estab¬ 

Ninth,  Your  time  and  the  time  of  others  will  not  be  diverted 
from  business  considerations  to  this  pending  litigation. 

Tenth.  The  large  expenses  incurred  for  printing,  traveling  and 
*hx  like  items  of  disbursement  will  be  avoided. 

Other  advantages  of  settlement  exist,  but  a  consideration  of 
the  foregoing  will,  I  think,  convince  you  that  as  ajbusiness  proposition, 

3\  I.  D.  -3- 

it  is  cheaper  to  settle  upon  the  basis  stated  than  to  expend  the  same  3um 
in  litigation  and  then,  perhaps,  be  obligated  to  pay  in  addition  a  sum 
considerably  larger. 

Kindly  understand  that  in  the  same  way  that  t  have  put  before 
you  the  advantages  and  advisability  of  settlement,  I  have  urged  the 
matter  upon  Mr.  Andera,  the  New  York  Company,  Mr.  Tomlinson  and  others.  I 
have  tried  to  bring  about  a  meeting  of  minds.  I  think  that  the  minds 
should  meet  upon  the  plan  above  outlined.  As  suggested,  I  will  see  you 
to-morrow  afternoon  if  you  will  let  me  know  by  telephone  at  what  time. 

Believe  me, 

Very  truly  yours, 

Feb.  20,  1909. 

1 2r,  Thomas  A.  "Edison, 

Fort  Myers,  Florida. 

Dear  Mr.  "Edison: 

On  Tuesday  I  will  write  you  in  detail  regarding  • 
"business:  for  the  week  ending  to-day;  it  has  "been  entirely  satis¬ 

My  negotiations  with  Mr,  Hicks  regarding  the  Hew  York  case 
are  still  continuing,  hut  I  do  not  see  any  prospect  of  a  settlement 
that  will  take  care  of  Mr.  Hyman  or  the  suits  of  the  other  local 
companies.  Mr,  Hymen  has  a  contract,  with  Andem  under  which  he  is 
to  raoefve  a  portion  of  any  proceeds  obtained  in  suits’ brought 
against  jobbers  and  dealers  in  Hew  York.  .  Should  the  main  case  be 
settled  and  a  release  obtained  from  Andem  and  tho  Heve  York  Company, 
it  would  prevent  Hyman  from  enjoining  jobbers  "or  dealers,  but  he 
could  still  sue  them  for  past  damages  and  thereby  greatly  annoy  and 
harrass  them.  lie,  Hicks  seems  to  feel  that  Hyman's  contract  can  be  ’ 
set  aside  on  the  ground  of  "champerty" ,  since  he  as  a  lawyer  agrees 
to  bring  the  suits,  pay  for  them  and  be  paid  out  of  the  proceeds.  . 

If  that  could  be  done,  Hyman  would  be  disposed  of,  " 

Regarding  the  suits  brought  by  the  other  local  companies, 
the  Hew  England  case  could  bo  settled  by  a  release  from  Andem, 
because  we  control  that  company;  and  Andem  owns  the  Ohio  company 
and  oould  settle  that  oase.  "Andem  could  also  give  ub.  a  .release 
under  his  -oontraot  With  the  other  companies,  but •  ■: 

.2.  2/20/09.  Thomas  A.  "Edison. 


■  entirely  free  the  situation,  "because  the  other  companies  could 
undoubtedly  still  go  ahead  and  annoy  us.  Their  position  i3  much 
weaker  than  the  New  York  company,  because  they  slept  on  their  rights 
for  a  good  many  years,  and  besides,  I  think  it  very  doubtful  if 
it  would  be  possible  at  this  late  date  for  the  other  companies 
to  prove  their  contracts.  I  should  regard  it  as  extremely  improba¬ 
ble  that  anyone  could  be  found  like  tfahnestook  who  would  .be  willing 
to  go  into  a  long  litigation,  especially  in  view  of  the  fact  that 
the  present  situation  is  distinctly  favorhble  to  us.  The  whole 
situation  seems  to  be  that  an  arrangement  can  be  made  which  in  all 
human  probability  would  relieve  us  of  further  annoyance,  but  there 
is  not  the  certainty  in  the  matter  that  would  warrant  me  in  .telling 
you  positively  that  every  danger  was  removed.  However,  1  will 
keep  in  touch  with  Hr,  Buckingham  and  Judge  "Wallace  and  be  guided 
very. largely  by  their  views,  although  nothing  final  will  be  done 
until  I  telegraph. you,  if  necessary,  and  "get  your  consent. 

I  tend  .you  he rev/ it h  copy  of  the  opinion  of  the  Court  of  Appeals 
in  Philadelphia  reversing  the. decision  of  Judge  Buffington  and 
sustaining  the  validity  of  your,  reissue  patent  Ho.  12,393,  copy 
of  which  I  also  enclose.  Judge  Arohbald,  who  writes  the  opinion, 
has  taken  a  very  sensible  end  broad-minded  view  of  the  patont. 

Yours  very  truly, 


Pob.  23,  1909. 

Hr.  Thomas  A.  Edison, 

Sort  Ityors,  I'la. 

iy  dear  Hr,  Edison?  •’ 

1  had  a  long  talk  yesterday  with  Hr.  Buckingham 
in  reference  to  the  Hew  York  case.  The  thing  we  have  most  to  fear 
is  that  the  U.  S.  Court  of  Appeals  may  switch  oyer  and  decide  that  ’ 
the  rights  of  the  Hew  York  Phonograph  Co.  are  based  on  contracts 
and  not  orippatonts,  and  therefore  apply  to  all  phonographs  and 
records.  Judge  Wallace,  however,  has  expressed  himself  very  f irci- 
hly  that  the  Court  will  not  do  this,  and  I  fool  convinced  that  he 
is  right.  This  being  so,  Hr.  Buckingham  and  I  feel  that  it  would 
be  unwise  to  make  any  further  concession  to  the  Hew  York  people 
and  that  no  settlement  should  bo  made  unless  everything  was  cleaned 
up.  To  make  a  settlement  as  they  now  propose,  that  would  not 
take  owe  of  Hyman  nor  the  other  looal  companies,  would  leave 

us  open  to  further  attaoks,  which  would  be  annoying,  although  I  do 
not  think  that  they  would  amount  to  anything,  Mir.  Buckingham  Is 
therefore  to  tell  Hr.  Hicks  that  the  offer  of  $175,000  stands, 
unless,  of  course,  the  Circuit  Court  of  Appeals  decides  the  case 
before  they  accept,  and  that  i^  must  mean  the  cleaning  up  of  every¬ 
thing,  not  only  of  the  Hew  York  Company,  but  of  the  other’ looal 
companies  as  well. 

Yours  very  truly, 


a  oi'  two 

‘T  L  0x  Uila  soiling  p: 


•n  S-  ^  ^ , . .  , 

■nis  i^r  r coord,  rirres- 

•  attribution  ia  national  phono^^8W»  °olas  that  the  oonpoooris 
artiot  who  ,h,  *“  ”,i"e  *"“*  ««■  value  ls  the 

i.  „  z  ,i  :t  if  -  —  -  -  u  pUa, 
*>«—  1 1"  n<.i  ...  :r.T  *****  o“®“y  t;“"  •»•*«> 

°»«®>  *  t™  „„,t,  “  "*'”*"■*  «“«•  ««Od  W  „ 
j;iar.  £,  1909.  0 

■Jr.  Thomas  A.  PdiBon, 

Port  hyera,  I-’la. 

Hy:  dear  Hr.  Pc! i son: 

P.oturning  to  the  office  this  morning,  I  find  that 
very  little  has  happened  during  my  absence ,  although  things  are  still 
very  wuiet . 

Much  to  ray  surprise  and  chagrin,  in  the  very  last  days  of 
Congress  the  copyright  bill  v/as  passed.  I  liave  just  loolcod  over 
the  Congressional  Uocord  and  find  that  there  wan  vniy  little  debate 
and  not  wen  tho  forraalit.y  of  an  Aye-nnd-ITo  vote.  The  law  goes 
into  effect  on  July  1st  next,  but  it  does  not  apply  to  copyrights 
taken  out  before  that  date;  so  that  we  have  time  enough  t o  take  care 
of  the  situation.  In  other  words,  even  if  a  song  in  copyrighted 
on  July  1st,  it  probably  would  not  become  popular  for  some  months 
after  that,  so  that  it  will  be  probably  sometime  in  tho  Pall  before 
we  are  oompelled  to  Beriously  meet  the  si 

3/8/09.  T.  A,  ‘Edison, 

One  very  unjust  provision  appears  in  the ' Act— That  royalties 
are  payable  on  records  manufactured,  and  not  on  those  whioh  cure 
sold,  so  that  the  manufacturers  will  hive  to  too  careful  not  to 
materially  go  ahead  of  their  actual  orders. 

In  writing  ilr.  Currier,  Chairman  of  the  House  Committee,  on 
5'n  tor  nary  23rd  last,  when  lie  submitted  the  bill  to  me  for  cornu  nt, 

I  said: 

j  '  "I  object  very  strongly  ;o  the  idea  of  charging  a  royalty  on 
I  all  records  manufactured.  Tills  seems  to  me  to  toe  unfair,  since 
the  composers  engirt  not  to  expo ct  manufacturer’s  to  pay  royalties  on 
records  which  are  not  sold,  nor,  I  cuuoose,  on  records  sold  in 
foreign  countries.  At  the  present  time  we  make  up  our  stock  of 
re cor  s  several  months  in  advance  of  their  going  on  sale  and  we  are 
frequently  loft v.  ith  large  amounts  on  hand  if  the  sales  do  not  come 
up  to  our  expectations.  Vo  certainly  ought  not  to  pay  royalties  on 
thousands  of  records  which  moy  never  leave  our  bins  and  which  way 

written  you,  it  seems  only  fair  that  some  provision  should  too  node 
for  tailing  care  of  records  Which  arc  returned  to  us  from  jobbers  or. 
dealers  and  which  they  arc  not  able  to  sell.  These  returned 
records  arc  broice::  up  and'  ho,  material  r incited.  2  figure  that 
this  will  amount  to  about  10£  of  our  entire  output,.  I  think  that 
the  royalty  ought  to  too  pe,id  on,  for  instance,  90*  of  the  records 
sold  and  the  remaining  10;,  should  toe  adjusted  within  one  yiv,  ac¬ 
cording  to  the  number  of  records  which  arc  returned, " 

iir.  Currier  uid  not  reply  to  this  letter  until  after  tlu;  bill 
toad  actually  passed,  mid,  as  I  have  said,  its  passage  v/as  s.  complete 
..surprise  to  mo  and  apparently  for  everyone  else  except  those  who 
appear  to  have  been  on  the  inside.  When  Tie  did  write  he  said  that 
the  bill  was  a  matter  of  compromise  between  two  extreme  factors, 
one  side  advocating  unlimited  and  exclusive  rights  and  the  other 
side  opposing  the  grant  of  any  rights.  Ee  says  that  he  personally 
thinks  icy  objection  should  have  prevailed  tout  that  he  accepted  the 
bill  as  the  best  compromise  possible,  and  that  any  injustice  can  toe 
remedied  toy  amendment.  I  doubt,  however,  if  anything  can  toe  done 
at  the  extra  session  of  Congress,  so  that  we  may  not  expect  any 
.modification  until  next  Winter. 


3.  3/S/09. 

T.  A.  Edison. 

In  the  meantime  I  trill  gee  Hr.  Joinaon  of  the  Victor  Company 
and  arrange  to  have  the  two  companies  stand  together  in  opposing  the 
payment  of  any  royalties  except  in  case  of  absolute  necessity. 

r  do  not  think  we  will  have  any  difficulty  in  getting  all  the 

songs  we  wont  at  very  reasonable  prices,  and  of  course  tbs  -;'aeid  of 
music  already  in  existence  is  tremendously  largo. 

I  will  also  propose  to  3Tr.  Johnson  that  thn  two  companies 
jarrango ,  after  the  lav  goes  into  affect,  to  make  a  test  case, 
because  I  still  think  the  lav  is  unconstitutional. 

in  this  connection,  I  would  like  to  have  your  opinion  on  .he 
following  question:  Last  Summer  I  saw  Victor  Herbert,  with  the 
idea  of  Jus  allowing  us  to  use  his  name  on  a  musical  critic,  ho  to 
select  proper  musical  pieces  and  to  pass  on  their  technique  and 
quality.  At  that  time  it  was  suggested  that  for  ouch  records 
as  were  thus  selected  and  approved  by  him  he  should  receive  o 
royalty  of  one  cent  each,  with  a  guarantee  of  $2500; 00  for  the 
first  year.  In  otter  ..-orris ,  if  we  sold  1,000,000  records  made 
under  Ms  direction  we  would  pay  him  010^000.00  per  year.  Those 
negotiations  wore  broken  off  by  !ir.  Herbert  because  he  was  afraid 

that  to  enter  into  any  arrangements  with  us  would  embarrass  him  in 
connection  with  the  copyright  question,  but  now  that  the  copyright 
lav;  has  been  passed  hs  has  brought  up  the  matter  again  and  has  asked 
me  ii  we  would  care  to  make  the  same  arrangement.  You  we-o  in 
fa.vo3  of  the  arrangement  at  the  time  I  spoke  to  him,  but  I  would 
like  to  know  if  you  are  still  in  favor  of  it?  Prom  an  advertising 
standpoint  I  think  it  would  be  a  good  thing,  so  that  if  you  approve 
I  will  go  ahead  and  have  the  matter  fixed  up  along  these  lines. 

Aylsworth'a  scheme  for  extracting  records  by  vacuo  has  turned 
out  to  be  vary  oucce g s^,oWld b£ are  now  equipped  and 



T.  A.  Edison, 

are  running.  By  this  arrangement  we  are  able  to  got  along  with 
about  30  moulds  less  per  machine  than  before.  The  records  come 
out  in  about  three  seconds.  The  difficulties  at  first  encountered 
v, ei' e  duo  to  the  fact  that  the  suction  was  put  on  too  soon,  when  the 
material  was  quite  soft,  so  that  the  walls  were  likely  to  collapse 
too  muoh.  A  number  of  the  big  records  have  been  moulded,  and  I 
jexpoot  to  tear  them  this  afternoon  and  will  report  later.  tie. 

I  Weber  is- mating  progress  with  the  big  machine  and  1  hope  there  will 
Abo  something  definite  to  show  you  when  you  return. 

I  hope  that  you  are  having  a  good  restful  time  and  arc  feeling 
in  fins  steps . 


r i^'t 

' - — — —  lion  day  night , 

Mar.  8,  190'?. 

i Hr.  Thomas  A.  Edison, 

•  I'ort  Myers,  kia. 

|Tly  dear  Mr.  Edison: 

!  1  cannot  lot  the  day  go  by  without  writing  you 

about  the  big  record,  which  I  heard  this  afternoon.  It  was  fine, 
hut  not  so  loud  as  I  hoped;  in  fact,  it  was  not  any  louder,  apparent¬ 
ly,  than  the  ordinary  record,  hut  I  understand  that  Miller  made  no 
effort  to  increase  the  loudness.  The  quality  was  beautiful  and  all 
the  details  seemed  to  bo  perfect.  I  heard  many  instruments  that 
never  'would  have  been  reproduced  on  the  ordinary  record.  The 
record  strikes  me  as  being  somewhat  fragile,  but  aim’d,  tough  com¬ 
position  would  solve  every  difficulty. 

Aikon  seems  to  feel  that  with  a  reoord  of  this  size,  the  taper¬ 
ing  mandrel  is  out  of  the  question,  not  only  because  there  would 
necessarily  bo  much  loss  by  incorrect  reaming,  but  principally 
because  of  its  length.  In  order  to  have  thick  enough  material  at 
the  thin  end,  the  thick  end  'would  ha 're  to  be  too  thick.  Probably 
an  expansible  mandrel  of  some  type  will  have  to  be  used  so  that  the 
wall  will  bo  of  the  same  thickness  throughout. 

I  verily  believe  that  this  record  is  the  greatest  improvement 
that  has  ever  been  made  in  the  talking  machine  business  will  be 
brought  about. 


March  9,  1909. 

;Mr.  TOldridge  H.  Johnson,  President, 
i  Victor  Talking  Joachims  Co., 

Camden .  ".  ,T. 

My  dear  Mr. .  Johnson: 

I  suppose  you  have  boon  advised  that  the 
copyrignt  bill  b  :  cacao  a  law,  and  X  ir.ngino  you  v/ere  us  surprised 
as  I  v.ns  at  the  indecent  haste  with  which  it  was  rushed  through 
Congress  in  the  last  hours  of  the  session.  There  was  no  debate 
whatever  in  the  S.  suto,  as  .'..spears  from  the  Congressional  Record, 
and  in  the  house  the  debate  was  purely  perfunctory  and  mas  flagrantly 
misleading,  the  statement  being  frequently  made  that  the  bill  was 
acceptable  to  both  sides.  In  neither  House  was  th  re  the  formality 
of  an  Aye -and -ho  vote.  There  is  no  use,  however,  for  us  to  repine, 
but  wc  must  accept  the  bill  as  nn  actual  reality,  fortunately, 
the  law  does  not  go  into  effect  until  July  1st  next  and  does  not 
apply  to  copyrights  registered  px-ior  to  that  date,  30  that  it  will 
probably  be  sometime  in  tile  fall  before  v/e  are  aotually  confronted 
by  the  situation. 

It  seems  to  me  that  me  should  have  another  talk  about  this 
natter  and  reach  some  definite  conclusion,  and  we  might  decide  that 
it  would  be  desirable  to  enlist  with  us  the  co-operation  of  Mr. 
faston.  I  feel  sure,  if  our  two  companies  ctand  by  each  other,  we 
can  substantially .  .^e^^te^si^W^n^^barraaament,  but  if  that 


E.  R.  Johnson, 

ia  not  done  we  will  simply  be  placed  at  the  mercy  of  the  publishers 
and  will  be  required  to  pay  the  full  toll. 

Lot  me  know  when  I  can  sec  you  either  in  Hew  York  or  Phila¬ 
delphia.  Friday  of  this  week  will  be  a  very  convenient  day,  but 
I  can  meet  you  at  almost  any  time  on  short  notioe. 

Yours  very  truly, 



Port  Myers,  Fla  . ,  ,3/l0/09. 

F.  L.  Dyer. 

If  Buckingham  has  seen  all  the  contracts  Between 
Andem  and  Hyman  and  their  confirmation  hy  New  York  Company,  and 
thinks  Hyman  cannot  injure  ub  hut  must  look  to  Andem,  and  also  if 
Andem-will  settle  with  outside .companies  in  such  manner  that 
company  accepts  amount  in  full  settlement  same,  receive  good  delivery 
them,  I  would  Be  .willing  to  settle  on  terms  mentioned. 


y  ' 

If  ON  BACK.  J 

Mr.  Frank  L.  Dyer,  President, 

National  Phonograph  Co., 

Orange,  N.  J. 

My  dear  Mr.  Dyerj- 

Your  letter  of  March  9th,  concerning  copyright  situation,  received. 

I  am  very  anxious  to  have  a  talk  with  you  over  this  matter,  but  cannot 
meet  you  this  week.  I  think  I  can  arrange  it  next  week. 

I  have  not  yet  received  a  copy  of  the  bill  as  passed,  and  I  understand 
there  were  some  amendments  made  at  the  last  moment.  While  1  do  not  know  anything 
about  the  legal  side  of  the  case  myself  and  have  not  as  yet  received  an  opinion 
from 'our  legal  department,  I  am  inclined  to  believe  that  the  bill  is  likely  to  be 
attacked  on  some  constitutional  basis,  as  most  of  the  attempts  of  Congress  to 
regulate  rates  seem  to  have  fallen  by  such  methods  lately.  I  believe,  however, 
that  now  is  the  time  to  make  a  practical  arrangement  with  the  publishers,  before 
such  a  movement  begins. 

The  question  of  inviting  Ur.  Fas ton  to  cooperate  with  us  will,  I  think, 
bear  considerable  discussion. 

I  will  communicate  with  you  early  next  week  and  arrange  an  appointment. 

X  would  like  to  have  Mr.  Ceissler  present  if  you  do  not  object. 

Yours  very  trulj 




lout,  ) 

:  independent  or  any  recovery  which  mi;. 

ac  to  the  amount  of  this  recovery,  1! 
.e  to  agree.  hr.  Buckingham  las  ulv.a;: 
iplo  would  not  recover  anythim;  norm  t! 
limits  that  if  they  re  cave  red  any  subs 

c  to  pay  the  '.'.hater •  s 
me  dollar.  This 
;  he  secured  against 
lawyers  have  never 
felt  that  the  Hew 
:  nominal  damages,  • 
iti&l  amount  it  would 

■hly  he  a  large  sum,  although  he  line  never  given  any  indication 
i at  that  sum  \7ouia  he.  judge  Y/allaco,  on  the  other  hand,  is_ 
fearful  of  the  results  of  an  accounting.  And  it  must  also  oe 
aberod  that  when  the  accounting  ir,  once  settled  it  does  not 
;v-e  case,  because,  the  Court  having  held  that  the  contract  runs 

until  l‘j.19,  there  might  he  an  additiond  recovery  tor  that  entire 
period,  the  accounting  depending  upon  the  particular  measure  of 
dorciv-eQ  adopt  d  hy  the  Court.  l.'y  personal  view  is  that  tho  law  on 
the  subject  of  damages  is  so  involved  and  so  much  hardship  is  imposed 
oil  successful  litigants  that  the  Hew  York  Company  would  not  recover 
anything,  but  there  is  still  the  danger  present,  and  you  know  that 
in  this  suit  our  calculations  have  frequently  been  grievously  upset. 
Remembering ,  therefore,  that  in  the  matter  of  the  accounting  alone, 
which  -would  almost  surely  be  gone  ahead  with,  we  might  very  readily 
spend  $100,000  for  lawyers 1  fees  and  oostB,  it  would  undoubtedly 
be  worth  a  good  deal  to  remove  the  danger  of  an  ultimate  recovery 
against  us  and  a  repetition  of  the  same  proceedings  from  time  to 
time  in  connection  with  damages  which  may  hereafter  accrue.  All 

2.  3/11/09.  T.  A.  Edison. 


this  is  on  the  supposition  that  from  now  on  everything  is  absolutely 
favorable,  but  there  are  still  further  dangers.  Judge  Hazel  hold 
that  v/e  v/ere  in  contempt  of  the  previous  injunction  by  infringing 
the  patent  on  shrinking  the  records  out  of  the  moulds;  if  the  Court 
of  Appeals  should  hold,  as  we  would  hope,  that  this  particular 
patent  was  not  infringed  because  Judge  Platt  had  limited  it  to  an 
expanding  process,  and  should  further  hold  that  the  praotice  of  the 
process  by  us  at  Orange  oould  not  infringe  any  rights  limited  to 
the  State  of  New  York,  it  would  practically  settle  any  possibility 
of  recovery  under  that  particular  patent  and  would  remove  the  danger 
of  an  injunction.  The  chances,  however,  are  that  tlie  Co“rt  would 
affirm  Judge  Hazel's  decision,  because  that,  being  the  easiest  course, 
is  the  one  that  Appellate  Courts  generally  follow.  In  that  case 
the  difficulty  would  then  arise  whether  by  changing  the  process  to 
provide  for  a  forcible  collapsing  by  vacuum  the  patent  had  been 
avoided.  That  question  would  come  up  on  a  renev/ed  motion  for 
contempt.  I  believe  that  the  patent  could  not  be  interpreted 
to  sover  more  than  a  shrinkage  by  change  in  temperature,  but 
nevertheless,  it  might  be  held  that  we  were  forcibly  performing  the 
same  operation  by  atmospheric  pressure  that  has  heretofore  been 
performed  by  a  reduction  in  temperature  and  v/ere  therefore  using 
an  equivalent  process;  and  if  the  Court  should  take  that  view 
it  is  not  unlikely  that  we  would  be  subjected  to  a  much  heavier  fine 
than  §2500.  Furthermore,  in  such  a  case,  we  would  still  have  the 
patent  confronting  us  and  would  then  have  to  try  the  move  of  giving 
up  our  dealers'  agreements  in  New  York  State,  and  this  would  be 
certainly  embarrassing.  If  the  Federal  Courts  in  New  York 
should  hold  that  we  were  violating  the  rights  of  the  New  York 
Company  under  this  patent  and  that  our  vacuum  process  did  not  avojjLd 
it,  the  other  local  companies;  representing  Ohio,  Illinois, 

Michigan,  Wisconsin,  Minnesota,  Kansas  and  Kentucky,  Y/ould  undoubt¬ 
edly  then  press  those  suits  forward  and  ask  for  preliminary  injunc¬ 
tions,  and  if  they  could  prove  title,  those  injunctions  might  be 
granted,  so  that  we  would  then  be  confronted  with  the  necessity  of 
giving  up  our  agreements  in  those  States,  and  even  then,  perhaps, 
we  might  get  snagged.  On  this  point,  my  personal  view  is  that  the 
other  local  companies  could  not  prove  title  and  that  their  rights 
are  so  much  weaker  than  those  of  the  New  York  Company  (since  there 
was  no  confirmation  agreement  and  no  attempt  to  maintain  their 
rights)  that  preliminary  injunctions  would  not  be  granted;  but  still 
this  doubt  and  danger  is  present.  The  third  course  that  might 
be  taken  by  the  Federal  Court  of  AppealB  in  New  York  would  be  to 
go  further  than  Judge  Hazel  and  hold  that  the  rights  of  the  New 
York  Company  are  not  limited  to  patents,  but  are  contract  rightB, 
giving  them  the  exclusive  lloense  to  sell  phonographs  and  records 
in  the  State  of  New  York,  and  if  the  Court  should  so^hold,  it  is 
unnecessary  to  say  that  v/e  would  be  confronted  by  a  calamity. 

No  one  seems  to  feel  that  there  is  any  likelihood  of  such  a  thing 
happening,  but  nevertheless  it  is  not  out  of  the  range  of  possibil¬ 
ity.  While  such  a  decision  would  undoubtedly  be  fatal  in  the  State 
of  New  York,  it  would  be  equally  fatal  to  the  suocess  of  the  other 
looal  suits,  because,  if  based  on  contract,  those  suits  would  be 
probably  barred  by  the  statute  of  limitations,  and  to  be  successful 
they  would  probably  have  to  be  prosecuted  as  straight  patent  suits. 

So  far  as  concerns  the  suits  whioh  have  been  brought  against 
our  jobbers  and  dealers  in  New  York  State  Courts,  and  amounting  to 
several  hundred  in  number,  you  v/ill  recall  that  the  test  case  against 


T.  A.  Edison. 


Davega  was  decided  againBt  us  by  Judge  Keogh,  who  held  that  our 
dealers  in  selling  phonographs  and  records  in  ITew  York  State  had 
violated  the  rights  of  the  Hew  York  Company  and  that  the  Hew  York 
Company  was  entitled  to  an  injuntion  and  an  accounting;  hut  on 
appeal  the  Appellate  Division  reversed  this  decision  and  held  that 
the  State  Courts  of  Hew  York  had  no  jurisdiction  on  tire  questions 
since  the  suits  were  really  patent  suits.  This  decision,  while 
disposing  of  the  suits  in  the  State  Courts,  would  not  prevent  the 
Hew  York  Company  from  bringing  similar  suits  in  the  Federal  Courts, 
which,  under  the  theory  of  the  Appellate  Division,  would  undoubt¬ 
edly  have  jurisdiction;  but  if  such  suits  were  brought,  I  do  not 
think  they  could  be  made  effective.  An  appeal  has  been  taken  to 
the  State  Court  of  Appeals  at  Albany,  and  that  appeal  is  to  be 
argued  this  Fall  and  we  have  every  reason  to  expect  that  the  deci¬ 
sion  of  the  Appellate  Division  will  be  sustained,  but,  of  course, 
tliis  doubt  also  is  present.  If  the  Federal  Court  of  Appeals  should 
go  further  than  Judge  Hazel  and  decide  that  the  questions  involved 
are  based  on  contracts,  and  not  on  patents,  it  is  very  probable  that 
tho  State  Court  of  Appeals  would  reverse  the  Appellate  Division 
and  deoide  in  the  same  way. 

All  of  these  doubts  and  dangers  really  exist;  some  of  them  are 
very  remote  and  others  aro  more  or  less  imminent.  We  have  staved 
off  any  serious  results  from  1901  until  the  present  time,  and  I 
have  no  doubt  that  if  we  had  been  placed  in  our  present  position 
five  years  ago,  when  the  Federal  suit  was  first  argued  and  a  good 
ma.qy  important  patents  were  3till  in  existenoe,  we  would  be  in  a 
very  serious  position,  which  could  not  be  settled  for  anything  like 
the  proposed  settlement.  After  going  over  all  of  these  points 

with  LIT.  Buckingham  v/e  both  together  drafted  up  the  telegram  which 
was  sent  you.  The  proposition  is  to  pay  $180,000  for  a  settlement 
of  the  Hew  York  situation,  which  includes  $25,000  on  the  side  to 
Andem  (and  I  3uspeet  $5,000  on  the  side  to  Hicks)  and  $30,000  for 
a  settlement  of  the  other  local  suits. 

The  settlement  of  the  Hew  York  situation  should  in  my  mind 
involve  the  following: 

1.  A  dismissal  of  the  Federal  suit,  a  consent  that  the 
Federal  Court  of  Appeals  shall,  if  the  Court  agrees,  reverse  the 
decision  of  Judge  Hazel  and  deny  the  motion  for  contempt  and  that 
the  accounting  shall  be  waived. 

2.  A  release  from  Andem,  under  his  contract  with  the  Hew 
York  Company,  and  an  assignment  of  all  of  his  rights  thereunder. 

3.  A  release  from  the  .Hew  York  Company,  approved  by  the  Board 
of  Directors  and  ratified  by  the  stockholders,  or  at  least,  by 
practically  all  of  the  stockholders. 

4.  A  transfer  to  us  of  suoh  stock  as  the  Andem  and  Fahnestock 

interests  control  and  a  consent  that  we  shall  withdraw  the  $,000  ’ 

shares  from  the  Central  Trust  Company,  which,  with  our  own  stock,  ' 
would  give  us  praotically  all  of  the  stock  which  has  so  far  been 

5.  I  imagine  it  will  also  be  possible  to  arrange  so  that 
the  present  directors  will  resign  and  our  own  directors  be  substi- 

3/11/09,  WAHMC 

T.  A.  Edison, 



6.  The  Hew  York  Company  will  grant  a  license  to  us  and  to 
all  of  our  jobbers  and  dealers  now  or  hereafter  appointed  under 
their  contracts. 

Perhaps  Hr,  Buckingham  may  conclude  tliat  other  precautions 
shall  be  taken, -but  it  aeoms  to  me  that  if  the  above  things  are  done 
there  could  not  be  any  question  as  to  the  safety  of  our  position. 

Of  course  a  single  disgruntled  minority  stockholder  might  attack  the 
settlement,  but  it  would  only  be  necessary  to  show  that  the  direc¬ 
tors  had  acted  according  to  their  best  judgment  and  discretion. 

So  far  as  all  the  other  local  companies  are  concerned,  Andoms 
contracts  give  him  the  right  absolutely  to  settle  them,  except  in 
the  case  of  Kentucky  and  Kansas,  and  in  these  two  latter  cases  his 
oontraot  provides  that  any  settlement  must  be  ratified  by  the  com¬ 
panies.  Andem  can  therefore  give  a  release  and  an  assignment  . 
under  his-  contracts  in  sill  the  cases  end  can  agree  to  have  them 
discontinued.  If  the  Kentucky  and  Kansas  Companies  disapprove 
of  Andem* s  settlement,  they  would  have  to  begin  those  two  suits 
over  again,  which  I  doubt  very  much  if  they  would  do,  on  account  of 
the  expense.  If  the  Kansas  and  Kentucky  suits  wore  again  started, 
they  certainly  ought  not  to  reach  a  more  favorable  condition  than 
the  Hew  York  Federal  suit,  and  if  we  can  get  the  Federal  Court  of 
Appeals  to  consent  to  a  reversal  of  Hazel's  decision,  there  would 
be  no  precedent  for  the  Federal  Courts  in  Kentucky  and  Kansas  to 
follow.  Besides  this,  to  would  have  an  assignment  from  Andem 
of  his  contract,  which  would  give  U3  60/  of  any  recovery,  so  that 
I  feel  quite  sure  we  would  never  hear  from  these  two  companies; 
but  nevertheless  this  possible  doubt  must  be  recognized."  Of 
course,  Kentucky  is  relatively  fmimportant,  but  Kansas  is  a  good 
State.  So  far  as  the  Hew  England  Company, is  concerned,  we  control 
the  3tock,  and  it  would»only  be  necessary  to  get  a  release  and 
assignment  from  Andem  and  an  agreement  with  the  attorneys  to  dis¬ 
miss  the  minority  stockholders*  suit  novr  pending  in  the  Hew  Jersey 
Chancery  Court. 

The  only  remaining  doubt  is  in  connection  with  Hyman,  as  stated 
in  my  telegram.  Hyman  has  a  contract  with  Andem  under  which  he 
(Hyman)  agrees  to  prosecute  Edison  jobbers  and  Sealers  in  Hew  York 
and  to  pay  all  expenses,  receiving  50/  of  any  reaovery.  In  the 
first  place,  it  is  very  probable  that  such  a  oontraot  oan  be  set 
aside  on  the  ground  of  Champerty,  as  it  is  highly,  improper  for  a 
lawyer  to  make  such  an  arrangement.  But,  if  j^aSS^'does  go  ahead, 
he  must  first  obtain  a  reversal  of  the  deciaion’wf'the  Appellate 
Division,  and  the  ohance  of  doing  so  is  very  remote,  and  would  be 
even  less  if  Judge  Hazel  *  s  decision  remains  undisturbed  by  the 
Federal  Court  of  Appeals.  If,  however,  the  Hew  York  State  Court  of 
Appeals  at  Albany  reverse  the  Appellate  Division  and  sustain  the 
decision  of  Judge  Keogh,  Hyman  could  not  obtain  an  injunction  against 
our  jobbers  and  dealers,  because  they  would  now  be  operating  under 
a  license  from  the  How  York  Company,  he  could  only  proceed  for 
damages,  and  I  believe  if  a  settlement  is  made  he  would  be  surround¬ 
ed  by  so  many  difficulties  that  he  could  not  expect  to  succeed. 

So  far  as  Hyman  is  concerned,  I  am  informed  that  he  is  an  impossible 
man  to  deal  with;  but  I  understand  from  your  telegram  that  you  are 
willing  to  leave  this  matter  to  the  best  judgment  of  ITr.  Buckingham 
and  Judge  Wallace,  and  if  they  believe  Hyman  cannot  hurt  us,  to 




go  ahead  without  "bothering  about  Mm. 

I  am  going  in  town  thi'a  afternoon  to  sec  Mr.  Buckingham  so  " 
as  to  start  the  ball  rolling,  but  lie  has  already  arranged  with 
Kr.  Tomlinson  to  go  before  the  Federal  Court  of  Appeals,  in  order 
that  there  may  be  no  decision  handed  down  on  the  contempt  motion. 

If  anything  new  turns  up  I  will  let  you  know. 



Thomas  A. Edison, Esq. , 
For*  Myers, Florida. 
Jfy  doar  Mr.  Edison: - 

New  York, War  oh  16,  1909, 

I  am  vary  sorry  to  toll  y0u  that  in  the  New  York  suit 
the  Federal  Court  of  Appeals  handed  down  a  decision  at  2:30 
this  afternoon,  sustaining  Judge  Hazel,  hut  going  to  the  ex¬ 
tent  that  we  most  feared,  of  holding  that  the  rights  of  the 
New  York  Company  are  based  on  contracts  and  not  on  patents. 

It  is  most  unfortunate  that  this  decision  3hould  have  been 
handed  down  at  this  time,  because  wo  have  all  been  working 
towards  a  settlement  of  the  case  on  the  lines  explained  to  you; 
and  Mr.  Buckingham  and  Mr.  Tomlinson  had  actually  mde  arrange¬ 
ments  to  go  before  the  Court  to-morrow  morning  and  have  the 
decision  postponed. 

It  is  unnecessary  for  mo  to  say  how  serious  the  situation 
is,  but  Hr.  Buckingham  and  his  associates  are  now  working  on  a 
petition  for  certiorari  to  the  Supreme  Court,  which  will  bo  pro* 
seated  in  a  few  days.  No  one  can  foresee  what  will  be  the 
putcomo  of  this  petition,  but  the  chance#  are  against  its 
being  granted.  They  tell  me  that  it  is  probable  that  the  in¬ 
junction  in  the  Hew  York  case  will  be  stayed  at  least  until  the 
Supreme  Court  denies  the  petition  for  certiorari;  and  if  the 
petition  is  granted, the  chances  of  the  injunction  being  still 
further  stayed  are  good.  The  preparation  of  the  petition  for 
certiorari  is  being  gone  ahead  with  on  the  assumption  that 
the  New  York  geople  will  now  break  off  negotiations .although 
there  is  a  bare  chance  that  they  may  oontinuo  thorn. 

T.A.B.,  2. 

Unfortunately,  In  the  oomplex  condition  of  these  nego¬ 
tiations,  they  have  not  reached  a  point  where  I  believe  the 
New  York  Company  would  ho  hound  to  go  ahead  with  them. 

I  intended  to  telegraph  the  substance  of  this  letter  to 
you,  hut  Mr.  Buckingham  was  fearful  that  in  some  way  the  in¬ 
formation  might  get  out  and  thus  show  the  New  York  Company 
how  very  serious  we  consider  the  situation  to  he. 

Of  course  at  the  present  writing  1  know  very  little  about 
the  case  other  than  what  Nr.  Buckingham  has  told  me;  hut  I 
will  keep  you  fully  advised  of  affairs  here. 

We  will  send  you  a  copy  of  the  decision  to-morrow. 

Hr.  Buckingham  is  also  considering  the  advisability  of 
presenting  a  petition  to  Judge  Hazel  to  have  the  injunction 
made  definite,  the  point  being  that  Judge  Hazel, who  went  fully 
into  the  details  of  the  case,  was  satisfied  that  the  rights 
of  the  New  York  Company  were  based  on  patents.  If  the  Court  of 
Appeals  finds  that  those  rights  are  based  on  contract  ,  it 
simply  means,  not  that  they  have  considered  the  details  of 
the  ease,  but  that  the  injunction  is  broad  enough  to  warrant 
their  interpretation. 

Judge  Wallaoe  is  in  Albany  to-day,  but  haB  been  sent  for 
and  Mr.  Buckingham  is  to  confer  with  him  to-morroY/. 

Very  truly  yours, 

^  7,  ffoj 

/"  On  Monday  afternoon,  March.  9th,  Mr.  Buckingham  asked  me  to 
go  in  town,  and  he  put  before  me  a  proposition  that  had  been  made 
by  Mr.  Hicks  to  settle  the  New  York  Company  litigation  for  the  out' 
side  sum  of  $810,000.00,  but  which  would  not  include  Mr.  Hyman's 
rights  nor,  possibly,  the  rights  of  the  Kansas  and  Kentucky 
Companies.  I  telegraphed  Mr.  Edison  from  Buckingham's  office 
later  that  evening,  after  having  talked  over  the  case  very  fully 
with  him.  (Copy  of  telegram  attached).  Mr.  Edison's  reply, 
dated  March  10th,  was  not  received  until  the  morning  of  Thursday, 

larch  11th.  Promptly  upoi 

eceipt  I  had  Walker  telephoi 

telegram  in  to  Pelzer,  with  the  request  that  Pelzer  should  submit 
it  immediately  to  Buckingham,  indicating  that  the  chances  of  making 

ettlement  were  very  good  e 

trging  upon  Mr.  Buckingham  the  impor¬ 

tance  of  making  an  arrangement  with  Tomlinson  under  which  a  de¬ 
cision  by  the  Court  of  Appeals  would  be  postponed  until  the  nego¬ 
tiations  for  settlement  we re  either  completed  or  abandoned.  Mr. 
Buckingham  again  sent  for  me  to  go  in  town  on  Friday,  the  12th 
inst.,  which  X  did,  and  he  told  me  that  he  had  started  to  go  over 
to  the  Court  Room  with  Mr.  Tomlinson  to  ask  the  Court  to  hold  up 
a  decision,  but  that  Tomlinson  had  asked  him  to  state  definitely 
that  a  settlement  would  be  reached,  which  he  refused  to  do,  in 
view  of  the  qualifications  which  Mr,  Edison  had  imposed  on  us .  I 
again  went  over  the  situation  at  that  time  with  Hr.  Buckingham  and 
told  him  that  he  could  assure  Mr.  Tomlinson  that  a  settlement 
would  be  reached,  because  I  looked  upon  the  possible  doubts  as 
being  too  remote  to  be  bothered  about.  I  understand  from  Mr. 

morning,  but  on  Monday  he  and  Tomlinson  again  attempted  to  get 


together  on  some  statement  which  would  he  made  to  the  Court,  hut  they 
were  unahle  to  agree  as  to  who  should  make  the  statement,  each 
feeling  that  if  the  negotiations  should  fall  through, the  side  which 
made  the  request  would  he  prejudiced  in  the  eyes  of  the  Court. 

They  therefore  did  nothing  with  this  matter  on  Monday,  hut  they 
arranged  to  go  before  the  Court  on  Wednesday  morning  and  make  a 
joint  request  for  delay,  hut  in  order  to  make  the  matter  certain, 

Mr.  Clark  went  over  on  Tuesday  afternoon  to  see  Judge  Ward  for 
the  purpose  of  having  him  (Judge  Ward)  suggest  to  Judge  Noyes 
that  the  case  should  he  held  up;  he  was,  however,  too  late, 
because  the  .decision  had  then  been  handed  down.  I  make  this  a 
matter  of  record  to  show  that  upon  receipt  of  Mr.  "Edison's  tele¬ 
gram  I  immediately  urged  upon  Mr.  Buckingham  the  importance  of 
having  a  decision  by  the  Circuit  Court  of  Appeals  withheld,  and 
I  repeated  to  him,  both  by  telephone  and  verbally,  a  number  of 
times,  the  importance  of  doing  this.  It  seemed,  however,  impossi¬ 
ble  for  Buckingham  and  Tomlinson  to  agree  upon  the  way  in  which 
the  request  should  be  made,  because  Tomlinson  felt  that  the  nego¬ 
tiations  might  f sill  through  and  that  the  Court  would  in  that  case 
feel  as  if  it  had  been  imposed  upon. 

March  17,  1909.  B.  L.  D. 


(Copy  of  telegram  sent  Mr.  'Edison  March  9,  1909) 

Mr.  Thomas  A.  Edison, 

Fort  Myers,  Florida. 

New  York  situation,  exclusing  Hyman,  can  he  entirely  closed 
up  one  hundred  eighty  thousand,  which  includes  extra  payment  to 
Andem.  Settlement  of  all  other  company  suits,  except  possibly 
Kentucky  and  Kansas,  thirty  thousand  additional.  This  removes 
danger  of  possible  reversal  New  York  decisions  and  also  danger  of 
accounting  and  possible  preliminary  injunctions  in  other  companies' 
suits,  if  decision  on  appeal  goes. against  us.  Even  if  decision  on 
appeal  is  favorable,  accounting  would  probably  proceed.  Buckingham 
thinks  result  of  accounting  would  be  a  large  figure  or  nothing. 

To  set!,le  now  would  substantially  stop  further  expense.  Buckingham 
considers  Hyman  situation  unimportant  and  believes  Hyman  must  look 
to  Andem  for  any  recovery,  also  that  Kentucky  and  Kansas  practi¬ 
cally  free  from  risk.  Both  Buckingham  and  Wallace  recommend 
settlement  of  all  cases  for  two  hundred  ten  thousand.  Wallace 
believes  accounting  more  dangerous  than  Buckingham.  Remembering 
that  to  continue  litigation  means  much  further  expense,-  possibly 
one  hundred  thousand,  proposed  settlement  may  really  involve 
jeopardy  of  not  much  over  one  hundred  thousand,  I  think  we 
should  settle.  This  telegram  read  and  approved  by  Buckingham. 

If  you  approve,  would  not  close  or  pay  anything  until  everything 
satisfactory  to  Buckingham  and  Wallace.  Wire  me  immediately 
your  views. 

F.  1.  Dyer. 

Ur.  Frank  L.  Dyer, 

President, National  Phonograph  Co., 
Orange ,N.J, 

My  dear  Ur.  Dyers- 

Since  writing  to  you  last  week  I  have  suffered  a  severe  attack  of  acute 
indigestion,  which  practically  put  me  out  of  business  until  to-day,  and  I  am  still 
a  bit  wobbly.  I  have  gotten  behind  in  my  regular  office  work  and,  if  satisfactory 
to  you,  would  like  to  put  off  my  visit  to  New  York  until  next  week,  about  Wednesday; 

I  will  communicate  with  you  further  as  to  the  exact  date,  in  order  to  make  sure  that 
it  suits  your  conveniencs. 

Uy  impression  is  that  v/e  must  get  at  this  question  vigorously  and  intel¬ 
ligently  us  soon  as  possible.  I  have  an  idea  that  the  music  publishers  will  under¬ 
take  to  get  together  and  prevent,  anyone  from  publishing  copyrighted  music  and,  at 
the  same  time,  make  an  effort  to  amend  the  present  copyright  bill.  I  am  not  at  all 
sure  that  the  mechanical  reproducer  clause  is  not  a  clover  move  to  overcome  the  pre¬ 
judice  of  Congress  against  attacking  the  mechanical  playing  industries,  with  the 
idea  that  the  restricted  royalty  business  can  be  attacked  on  constitutional  lineB. 

Our  attorney  seoms  to  think  that  the  clause  comes  within  constitutional  lines,  but, 
of  course,  he  realizes  that  such  a  question  depends  largely  on  circumstances  and  the 
personnel  of  the  Court  considering  the  matter.  Uy  impression  is  that  the  limited 
compulsory  license  clause,  if  attacked  and  fought  vigorously,  will  bo  removed  from 
the  bill.  Therefore,  I  believe  we  must  approach  the  publishers  in  a  co-operative 
spirit.  Certainly,  we  cannot  afford  to  comply  with  the  clause  regulating  the  terms 
of  payment,  and  we  must  have  consideration  on  the  question  of  returned  records,  etc. 
The  bill  as  it  now  stands  is  certainly  very  unbusinesslike  snd  would  prove  very  un¬ 
satisfactory  to  all  concerned.  We  are  studying  the  situation  over  here  as  diligently 
as  our  opportunity  will  permit  and  I  believe,  as  you  have  doubtless  found,  that  there 
are  many  angles  and  many  possibilities  to  be  considered. 

I  trust  you  will  understand  my  semi-legal  language.  I  would  be  pleased  to 
hear  from  you  as  to  your  opinion  along  Buch  lines  as  I  have  written  to  you  about  or 
you  may  be  disposed  to  disclose  to  me. 

Certainly  it  is  time  for  the  talking  machine  men  to  pull  together,  but  we 
muet,  if  we  upproach  the  Columbia  Co.,  make  very  sure  that  an  understanding  is  reached 
whereby  we  will  not  suffer  through  lack  of  complete  co-operation.  I  have  had  some 
experiences  lately  that  impress  the  importance  of  this  matter  upon  me.  . 


MAR  181909 



March  17,  1909. 

Mr.  Thomas  A.  Edison, 

Port  Myers,  Pla. 

Dear  Mr.  Edison: 

In  reference  to  the  Hew  York  suit,  1  have  notlilgg 
to  add  to  ny  letter  of  yesterday;  hut,  now  that  the  first  shock 
has  passed  over,  I  cannot  help  hut  feel  that  the  situation  is  not 
so  hopeless  as  it  looked  at  first.  Perhaps  hy  this  time  you  have 
received  a  copy  of  the  opinion,  hut  if  not  you  will  certainly  get 
it  from  Mr.  Buckingham's  office  very  shortly.  It  is  evident  that 
the  Court  of  Appeals  made  no  attempt  to  pass  upon  the  intrinsic 
merits  of  the  case',  they  simply  soy  that,  having  the  injunction 
before  them  the  question  is  whether  or  not  the  injunction  was 
violated.  The  injunction  enjoins  us  "from  directly  or  indireotly 
selling  or  leasing  within  the  State  of  Hew  York,  phonographs  and 
supplies  therefore,  to  others  than  complainant  and  from  using, 
Within  the  State  of  Hew  York,  phonographs  and  supplies  therefor, 
and  from  causing  to  he  sold  or  causing  to  he  leased  or  causing 
to  he  used,  within  the  State  of  Hew  York,  phonographs  and  supplies 
therefor,  hy  others  than  oomplainant,  and  from  selling  for  use  or 
licensing  for  use, within  the  State  of  Hew  York,  phonographs  and 
suppll es  therefor,  hy  otherB  than  complainant  in  violation  of  the 
provisions  of  and  of  the  rights  of  the  complainant  under  certain 

2.  3/17/0^,mmoo  HqAflDOMOMq  jamoitam  T*  A*  ^s0»* 

contracts  as  extended,  'bearing  date  October  12,  1888,  between  the 
North  American  Phonograph  Company  and  the  Metropolitan  Phonograph 
Company  and  also  be  tween  Thomas  A.  'Edison,  the  Edison  Phonograph 
Company,  the  Edison  Phonograph  Works ,  The  North  American  Phono¬ 
graph  Company  and  Jesse  H.  lippincott,  and  a  contract  bearing  date 
the  6th  day  of  February,  1889,  between  the  North  American  Phono¬ 
graph  Co.  and  Join  P.  Haines,  and  a  contract  bearing  date  July 
1,  1893,  between  complainant  and  the  North  American  Phonograph 

looking  at  the  injunction  as  above  worded  and  at  nothing 
else,  the  Court  of  Appeals  say  that  it  is  broad  enough  to  prohibit 
all  sales  of  phonographs  and  supplies,  whether  made  under  patents 
or  not,  and  they  therefore  reach  the  conclusion  that,  while  Judge 
Hazel  was  justified  in  holding  us  in  contempt,  his  reasons  for 
doing  so  v/ ere  erroneous  and  too  narrow.  Now  as  a  matter  of  fact, 
when  the  injunction  was  first  presented  to  Judge  Hazel  by  the 
New  York  Company  it  wa3  the  same  as  quoted  above,  exoopt  that  it 
did  not  include  the  words  "in  violation  of  the  provisions  of  and 
the  rights  of  the  complainant  under  certain  contracts,  etc."  In 
other  words,  Judge  Hazel  refused  to  grant  an  injunction  which 
applied  to  all  phonographs,  but  directed  that  it  should  be  modi¬ 
fied  so  as  to  include  only  such  phonographs  or  supplies  as  were 
covered  by  the  contracts,  and,  as  you  know,  he  interpreted  those 
contracts  practically  as  patent  licenses.  The  Court  of  Appeals, 
however,  say  that  they  cannot  pass  upon  the  scope  of  the  injunc¬ 
tion  as  it  exists  and  cannot  take  into  account  anything  that 
transpired  before  Judge  Hazel  at  the  time  of  the  settlement  of 
the  order,  and,  looking  at  the  injunction  apart  from  everything 
else,  they  hold  that  the  words  "in  violation  of,  cto."  added  by 

T.  A.  15(118011, 

3.  3/17/09. 


Judge  Hazel  at  Mr.  Buckingham’s  suggestion,  are  merely  words  of 
description  and  are  not  words  of  limitation.  The  Court  of 
Appeals,  however,  say  that  if  the  injunction  is  wrong  or  that  a 
mi  at  alee  has  been  made,  it  cannot  bo  corrected  on  the  contempt  pro- 
oeedings.  This,  it  seems  to  me,  is  a  direct  invitation  for  us  to 
GO  to  Judge  Hazel  and  have  the  injunction  modified  no  as  to  carry 
out  the  ideas  he  has  so  often  expressed  in  his  decisions.  In 
view  of  the  flagrant  injustice  which  has  been  done  us  by  the 
Court  of  Appeals  in  misinterpreting  the  effect  of  his  decisions, 

I  do  not  3ee  why  in  all  decency  he  should  not  be  only  too  glad  to 
have  the  matter  set  right.  I  will  urge  this  view  very  strongly 
on  Mr.  Buckingham . 

He  just  telephones  me  that  nothing  new  has  transpired  to-day, 
except  that  he  3ias  seen  Mr.  Tomlinson  and  his  partner,  Mr.  Tompkins, 
and  that  they  are  both  still  anxious  to  have  the  negotiations 
['.one  ahead  with.  I  am  to  meet  Hr.  Buckingham  tomorrow  morning, 
and  if  necessary  will  write  you  from  his  office.  At  that  time 
I  will  take  up  with  him  the  question  of  the  advisability  of 
getting  word  to-  all  of  our  jobbers  in  Hew  York  State  so  that  they 
may  be  able  to  get  in  orders  for  phonographs  for  delivery  before 
the  2 6 tli  inst.,  at  which  time  the  Court  of  Appeals  hartd3  dw/n  its 
mandate.  As  I  have  before  ivritten  you,  we  have  already  taken  the 
precaution  to  ship  them  .al}  records  possible,  so  that  some  of  the 
May  list  have  already  been  shipped. 

If  a  petition  to  Judge  Ilasel  is  filed  for  a  modification  of 
the  injunction,  it  should,  in  uy  opinion,  be  presented  by  Judge 
Hatch,  who  is  a  neighbor  of  Judge  Hazel1 s  and  to  whom  the  latter 
would  at  least  show  respectful  consideration.  Judge  Hatch  is  at 
present  in  Oklahoma,  but  is  expected  back  on  Saturday.  Mr. 

° ^ ^^/MAIMOa  HSAflOOMOHS  JAMOlTAW  T.  A.  EdiSOn. 

Melville  Church  is  also  very  fertile  in  suggestions  regarding 
Federal  practice,  but  he  is  to-day  in  Hew  Orleans.  I  have  tele- 
graphed  him  and  have  just  received  word  that  he  will  be  here 
on  Monday  morning. 

Yours  very  truly, 

March  19, 


Hr.  Thoms  A.  Edison, 

Eort  Hirers,  Fla. 

Dear  Mr.  Edison: 

In  reference  to  the  Hew  York  case,  I  spent  all 
day  yesterday  In  town  consulting  with  Hr.  Buckingham  and  Judge 
Wallace.  I  saw  them  separately,  so  as  to  get  their  individual 
views  Uninfluenced  by  the  opinion  of  each  other.  They  both 
believe  that,  while  Judge  Hazel  might  concent  to  a  modification  of 
the  injunction,  it  would  be  practically  a  hopeless  proposition  to 
go  to  him  to  have  that  done,  in  view  of  the  decision  of  the  Court 
of  Appeals.  They  also  regard  an  application  for  re-argument 
before  the  Court  of  Appeals  as  hopeless,  because. they  both  say 
that  the  Court  of  Appeals  is  undoubtedly  most  unfavorably  disposed 
to  us,  and  that  we  can  expect  no  concessions  from  them.  Judge 
Wallace  expressed  himself  rather  more  forcibly  than  I  would  care 
to  put  in  writing.  The  thing  to  be  done,  in  their  opinion,  is  to 
apply  to  the  Supreme  Court  for  a  review  of  the  case,  but  the 
chances  of  the  Court  taking  up  the  case  by  certiorari  arc  very 
unfavorable.  Hr.  Hicks  succeeded  last  year  in  getting  the 
Supreme  Court  to  take  up  the  two  Victor  suits  in  this  way,  but  it 
was  only  because  the  Supreme  Court  regarded  the  questions  involved 
as  of  great  public  Interest.  It  would  be  our  idea  to  show  that 
in  the  present  oase  Wd'°<!Jtife&tlW}i^vte±<S0<J!£VMdqual ,  if  not  greater, 
public  interest.  If  a  petition  for  certiorari  is  filed  with  the 

2.  3/l9/09.  Thomas  A.  Edison. 

Supreme  Court,  Hr.  Buckingham  seems  to  feel  that  the  injunction 
will  he  further  stayed.  The  effect  of  presentinc  the  petition 
to  the  Supreme  Court  would  he  to  hold  up  the  case  pending  nego¬ 
tiations  for  settlement. 

Both  Mr.  Buckingham  and  Judge  Wallace  are  strongly  of  the 
opinion  that  we  should  settle  the  case,  and  I  Believe  this  can 
still  he  done,  although,  of  course,  at  a  higher  figure  than  they 
were  formerly  ready  to  accept.  Hr.  Tomlinson  saw  Hr.  Buckingham 
yesterday  and  told  him  that  he  could  effect  a  settlement  for 
$500,000.00,  hut  this,  of  course,  is  their  first  figure  and  no 
doubt  can  he  reduced.  I  told  him  that  the  amount  was  entirely 
out  of  the  question;  that  we  have  probably  not  made  that  much 
money  in  Hew  York  State  in  all  the  time  tint  we  have  been  doing 
business  there;  that  we  could  not  pay  so  much,  and  that  if  they 
insisted  on  any  unreasonable  demands  we  -would  simply  have  to  get 
out  of  the  State.  1  suggested  that  we  had  other  lines  of  business 
to  follow  and  that  the  phonograph  business  was  poor  anyway,  so  that 
with  these  ideas  in  mind  I  believe  he  will  be  able  to  luring  Tomlinson 
down  to  some  reasonable  figure.  Possibly,  when  the  matter  oomoB 
to  a  head,  it  might  be  well  for  me  to  see  you  personally  and  lay 
tlio  whole  proposition  before  you,  but  I  will  not  do  so  unless  it 
is  necessary  and  until  the  matter  is  definitely  settled  one  way 
or  the  other. 

Yours  very  truly, 


C  A  I 

..March  26th,  1909. 

Mr.  Frank  L.  Dyer,  President, 
National  Phonograph  Co., 
Orange,  N.  J. 

'  H/A* - , 

l»r  r 

iU'  •  MAR  27  1909 

1  V  FRANK  L.  DY'R. 

to  Mr  oonversati°“  ycur  °m°*  y08t«-day.  I  have  tried  to  convey 

to  Mr.  Child  as  fully  as  is  possible  our  conclusions  on  the  talent  question.  Of 
course,  there  are  likely  to  be  misunderstandings  in  oral  negotiations;  in  auch 
cases,  I  would  suggest  that  Mr.  Miller  appeal  to  you  immediately,  and  I  have  in¬ 
structed  Mr.  Child  to  appeal  to  me  immediately. 

In  the  Be  Wolff  Hopper  matter:  I  think  the  Victor  Co.  cun  waive  all 
question  of  exclusive  rights  to  "Casey  at  the  Bat"  in  favor  of  a  new  arrangement 
whereby  Mr.  Hopper  may  make  the  record  for  the  National  Co.,  if  the  said  new  ar¬ 
rangement  can  be  made  in  such  a  manner  that  Mr.  Hopper  will  make  the  record  over 
tor  us.  We  reel  that  we  could  handle  a  few  other  records  by  Hopper  and, if  it  so 
happened  that  the  list  we  select  would  suit  you,  or  if  an  arrangement  could  be 
entered  into  whereby  he  would  sing  half  a  dozen  records  for  us  and  half  a  dozen 
for  you,  we  could  probably  secure  his  services  exclusively  to  our  joint  interests 
for  a  reasonable  figure. 

1  regard  the  matter  of  requiring  the  artists  to  remake  records  occasion¬ 
ally  as  important.  For  instance,  the .Victor  Co.  is  continuously  making  improve¬ 
ments  in  recording  and  we  expect  to  for  a  long  time  to  come.  We  have  no  doubt 
that  you  also  expect  to  make  improvements.  Therefore,  an  arrangement  with  an 
artist  for  exclusive  rights  to  a  certain  selection  is  apt  to  become  valueless 
from  the  improvement  in  the  art  unless  the  said  artist  will  agree,  for  a  certain 
consideration,  to  remake  the  record  at  certain  intervals;  it  should  be  about 
once  a  year. 

I  do  not  believe  that  either  one  of  us  can  lay  down  positive  linos  to 
guide  Messrs.  Child  and  Miller  in  their  arrangements.  I  think,  however,  that  they 
can  reach  an  understanding  between  themselves  well  within  the  understanding  as  be¬ 
tween  our  respective  companies  which  will  work  out  satisfactorily. 

.  „  th®  question  of  securing  grand  opera  talent:  I  explained  your  idea 

to  Mr.  Child  and  he  agrees  with  me  that  there  is  nothing  in  your  plan  of  securing 
a  °5  exclusive  talent  that  conflicts  with  our  interests,  and  Mr.  Child  express- 

ed  himself  as  willing  to  help  Mr.  Miller  in  any  way  he  could  to  secure  a  substan¬ 
tial  list  exclusively.  Mr.  Child  has  been  at  this  sort  of  thing  for  a  number  of 
years  and  understands  the  personalities  and  relations  of  a  good  many  people,  their 
connections  with  other  companies,  otc. 

co.-folio  2  -  F.L.D.  -  3/26/09. 

We  feel  that  it  is  good  policy  for  us  to  help  you,  who  are  confining 
yourselves  exclusively  to  cylinder  goods,  as  it  takes  the  services  of  such  artists 
away  from  others  who  are  competing  with  us  in  the  disk  line.  I  have  no  doubt  at 
all  that,  if  you  desire  to  secure  a  substantial  list  of  celebrated  grand  opera 
singers,  you  can  got  them,  and,  as  I  have  said  above,  we  are  willing  to  help  you 
as  much  as  wo  can  or  as  much  as  you  desire  our  help. 

As  to  the  arrangement  between  Ur.  Miller  and  Mr.  Child  to  prevent  com¬ 
petition  for  the  same  artistes  We  are  willing  and  anxious  to  enter  into  some  . 
understanding  whereby  this  will  not  occur.  Of  courso,  the  value  of  such  an 
understanding  rests  very  largely  between  Mr.  Child  and  Mr.  Miller.  It  will  be  of 
little  value  unless  there  is  honest,  hearty  co-operation  between  these  two  gentle¬ 
men,  or  whoever  has  the  matter  of  securing  artists  for  your  Company  in  hand.  I  1 
know  Mr.  Child  will  act  fairly  and  liberally  so  long  as  he  feels  that  he  is  getting 
the  same  kind  of  treatment.  I  believe  that  Mr.  Child  and  Mr.  Miller  can  arrange 
this  matter  satisfactorily. 

Yours  very  truly, 



Cl  £dwlu 


\y  yur 

ir ,  l^sq. ,  Pr/silient , 
National  Phonograpl 

,  xy/ 

’  Re f err irte^t  &\my  n 


f  APR  3 1909 
\L  FRANK  L.  »Y£R, 

'  Referring^ &&\my  meeting  w-i-th  the  jobbers  at 
Columbus  on  Sunday  last,  would  strate  that  they  held  a  morning  session 
at  which  I  was  not  present,  hut  I  was  invited  to  take  part  in  the 
afternoon  session.  The  principal  matter  of  complaint  which  they 
had  to  take  up  with  the  National  Phonograph  Company  was  the  subject 
of  Babson  Bros,  advertising,  which  from  their  point  of  view,  was 
very  objectionable.  They  had  quite  a  mass  of  correspondence  they 
had  received  from  dealers  in  all  sections  of  the  country  complain¬ 
ing  about  the  advertisements  in  question,  and  in  addition  to  this, 
they  had  a  great  many  copies  of  the  advertisements  whi ch  had  been 

issued  by  Babson  Bros.  These  were  all  called  to  my  attention,  and 
they  wanted  to  know  what  our  company  proposed  doing  in  regard  to  it. 

X  assured  them  that  the  matter  was  under  advisement,  and  that  in- 
all  probability  it  would  be  adjusted  very  shortly,  to  their  entire 
satisfaction.  I  am  quite  certain  you  will  receive  an  official  letter 
from  the  Association  regarding  the  matter. 

X  took  up  with  them  in  detail  the  proposed  plan  for  a 
Continuous  Exchange,  and  it  met  with  the  unanimous  approval  of  those 
present,  particularly  after  I  had  called  their  attention  to  the  fact 
that  we  intended  changing  the  wording  of  one  of  the  paragraphs, 
which  would. make  it  compulsory  for  the  dealer  to  send  us  an  order 
for  a  quantity  of  records  equal  to  the  number  he  was  returning  to 
the  factory,  which  we  would  in  turn  send  to  the  jobber  through  whom 
the  exchange  was  to  he  consummated,  just  as  soon  as  we  could  render 
proper  credit  for  records  returned.  They  were  all  so  we 11  pleased 
with  the  proposition  that  they  intended  writing  at  once  to  the  Victor 
Company,  suggesting  that  they  also  institute  an  exchange  along  the 
same  lines.  I,  however,  insisted  that  they  permit  the  matter  to 
rest  until  such  time  as  we  could  issue  our  letter  to  the  Trade  on 
the  subject,  when  they  might  take  the  matter  up  if  they  saw  fit. 

They  have  agreed  with  withhold  their  letter  to  the  Victor  Company 
until  we  can  complete  arrangements  covering  our  exchange. 

They  are  all  very  desirous  of  having  our  Company  produce 
a  machine  which  will  compete  with  the  "Victrola" ,  hut  it  was  the 
consensus  of  opinion  that  they  would  not  he  very  successful  in  market 
ing  such  a  machine,  unless  they  had  some  high-priced  records  to  go 
with  it;  meaning,  of  course,  Grand  Opera  Records,  which  must 
necessarily  he  made  hy  high. class  talent.  It  was  further  suggested 
that  such  a  machine  should  have  some  very  conspicuous  points  of 
difference  from  any  machines  we  are  now  manufacturing;  they  mention¬ 
ed  specially  that  it  should  have  a  Reproducer  entirely  different 
from  any  we  are  now  using,  particularly  a  larger  one,  even  though 
it  did  not  produce  any  better  results.  This  is  one  of  the  matters 
I  will  draw  to  Mr.  Weber's  attention. 

I  saw  several  of  the  "Victrola"  machines,  and  I  must  ad¬ 
mit  that  the  lines  of  the  Victrola  Cabinet  are  far  superior  to  any 
we  have  so  far  seen  in  the  models  presented  to  us,  and  I  am  enclos¬ 
ing  herewith,  a  photograph  which  shows  one  of  these  machines  quite 
plainly.  These  machines  are  equipped  with  an  excellent  hall  hearing 
caster,  which  permits  them  to  he  moved  very  readily,  although  they 
and  quite  heavy. 

The  jobbers  as  a  whole  appear  to  he  very  enthusiastic 
over  the  Amberol  Record  Proposition,  and  I  find  that  in  most  cases 
their  advance  orders  for  the  Amberol  Records  are  almost  equal,  if 
not  quite  as  large  as  those  they  are  sending  us  for  the  Standard 
type.  The  question  arose  as  to  where  we  obtained  the  word  "Amberol" 
and  I  explained  to  them  that  it  was  a  word  coined  hy  Mr.  Edison. 

They  were  of  the  unanimous  opinion  that  it  was  a  very  happy  thought, 
and  that  out  advertising  was  bringing  same  to  the  attention  of  the  . 
public  in  a  way  which  would  certainly  produce  results. 

The  question  of  a  Clearing  House  for  surplus  records  was 
very  fully  discussed,  and  they  all  appeared  to  think  that  the  prop¬ 
osition  as  now  being. carried  out  by  Mr.  Ornsteinof  the  Victor  Co., 
would  prove  of  great  benefit  to  all  jobbers,  but  I  explained  to 
them  that  we  had  no  intention  whatever  of  attempting  to  inaugurate 
a  scheme  of  this  sort,  as  we  felt  that  the  jobbers  themselves  should 
handle  the  proposition;  it  was  then  practically  decided  that  they 
would  endeavor  to  establish  a  Clearing  House  for  surplus  stocks, 
which  would  either  be  handled  by  their  present  Secretary,  Mr.  P.'  B. 
Whit sit ,  or  by  some  one  of  their  members,  the  jobbers  to  be  charged 
their  pro  rata  share  for  the  maintenance. of  such  a  department.  Mr. 

W.  E.  Henry  at  once  handed  Mr.  Vhitsit  a  check  for  $100.  so  as  to 
start  the  proposition.  The  method  of  handling  this  matter  is  to 
be  decided  upon  at  some  future  date. 

Before  the  Meeting  adjourned,  I  invited  them  all  to  take 
dinner  with  me  at  the  Southern  Hotel  that  evening,-  ’which  they  did, 
and  we  had  a  very  pleasant  session  lasting  until  about  nine  o'clock, 
when  some  of  them  were  compelled  to  leave  in  order  to  catch  their 
trains.  Some  of  them  left  the  city  that  night.  I  remained  in 
Columbus  until  Monday  evening,  as  did  some  of  the  jobbers.  This 
afforded  me  an  opportunity  of  discussing  business  conditions  with 
them  generally.  I  left  for  Detroit  Monday  night,  arriving  there 
Tuesday  morning. 

C-eo.  E,  Mickel  of  the  Hebraska  Cycle  Co.,  Omaha,  Neb., 
was  present,  and  in  conversation  with  him  I  found  that  he  is  now 
selling  about  three  Edison  machines  to  one  Victor.  This,  of  course 
taking  into  consideration  his  entire  business;  but,  in  Omaha  his  * 
retail  sales  on  the  two  lines,  is  about  even. 

Max  Strassburg  of  Grinnell  Bros. ,  informed  me  that  he  had 
seen  a  recent  advertisement  of  the  Peoples  Outfitting  Co.,  Detroit 
who  were  selling  an  Edison  Sev/ing  Machine.  I  have  requested  Mr.  ’ 
Strassburg  to  endeavor  to  locate  one  of  these  advertisements  for¬ 
warding  same  to  me  at  this  office,  so  that  it  may  be  drawn  to  your 

®be  P,  B.  Whitsit  Co.,  Columbus,  advise  that  they  are  pay¬ 
ing  the  Victor  Company  about  one-half  the  amount  they  are  paying  us 
for  their  monthly  purchases,  and  that  about  80&  of  the  Victor  Co's, 
goods  are  disposed  of  at  retail. 

The  Whit sit  Company  have  very  few  Edison  machines  on  hand, 
and  they  will  be  compelled  to  place  immediate  shipping  orders  for 
same  in  the  near  future.  This  is  also  true  of  Grinnell  ,ros. , 
Detroit ,  and  I  believe  I  am  safe  in  saying  that  the  entire  jobbing 
•crade  have  at  present  very  few  Edison  machines  in  stock.  If,  there¬ 
fore,  businass  does  revive,  we  ought  to  receive  some  nice  orders 
for  machines,  in  the  near  future. 

,  _  .  .  ®ri”?e?-1  Bros. «  Detroit,  have  one  of  the  finest  buildings 

in  Detroit,  which  is  devoted  entirely  to  pianos  and  musical  merchan¬ 
dise.  Their  basement  is  goven  over  to  their  talking  machine  depart¬ 
ment,  and  it  appears  that  our  line  is  receiving  excellent  represen¬ 
tation-equal  in  every  respect  to  that  given  the  other  lines. 

The  American  Phonograph  Co.,  Detroit,  will  remove  from 
their  present  location  on  May  1st  to  a  store  directly  opposite 
Grinnell  Bros,  This  is  due  to  the  fact  that  their  landlord  demanded 
an  increase  in  rent  from  $2750.  to  $6500. ,  and  they  have  secured 
their  new  location  for  $3800.  per  year  on  a  three  year  lease.  They 
have  about  100  Edison  machines  now  in  stock;  consequently,  we  cannot 
expect  any  immediate  shipping  orders  from  them  for  machines. 

I  next  visited  the  Eclipse  Musical  Co.,  Cleveland,  where 
business  is  only  fair.  Mr.  Towel  of  that  company  advised  me  that 
o!  pl5?0d  an  order  for  approximately  75  Edison  phonographs, 

as  he  had  practically  run  out  of  machines. 

I  visited  several  of  the  large  dealers  in  Cleveland,  none 
of  whom  appeared  to  be  doing  any  great  amount  of  business. 

vh n  it  W  T.  neXo  stop-  was  at  Pittsburg.  I  found  that  the  Standard 
Talking  Machine  Company  were  still  endeavoring  to  lessen  their 

°f  merchandise  on  hand,  which  they  had  secured  through  pur¬ 
chasing  the  stock  of  the  several  jobbers  which  they  recently  took 
°°?oer?  appear  to  be  progressive,  and  are  making  an 
earnest  effort  to  obtain  the  dealers'  business  throughout  their 
territory  by  travelling  four  salesmen,  in  addition  to  v/hich  Mr. 

Roush  himself  makes  short  trips  each  month* 

While  in  Pittsburg  I  had  an  interview  with  Mr.  Eischer. 
Manager  of  'Che  Talking  Machine  Department  of  the  C.  C.  Mellor  Co. 
also  their  Mr.  Soren  who  is  their  financial  man.  The  subject  of 
their  becoming  Edison  jobbers  was  again  brought  up,  but  you  will 

assurance  that  7“  Sfr&  the  Stfndfrd  talking  Machine  Company  our 

^  £  the  Present  at  least,  we  would  leave  them  undis- 

&££ srs? 

practically  all  CoKflfS ,  “  ,v 

fls^Er'in^v"  ?»^°5)r^,?osbw  ssfi.1;’ 



best  nonJ^ti 'business  conditions  do  not  appear  to  he  of  thfe 

*.^2iiWMsisas  ag-srs-^-sjt.. 

Yours  very  truly 

NEW  YORK,  «.  Y . .AB.C».....8*...19Q9». . 

National  Phonograph  Co., 

Orange,  N.  J. 


X  beg  to  confirm  my  agreement  with  your  president,  Mr.  Prank 
I.  Iyer,  to  accept  $30,000,  to  be  paid  by  ycur  Company  in  three  notes  for 
$10,000  each,  payable  respectively  three,  six  and  nincmonths  from  date 
of  settlement  hereinafter  referred  to,  in  full  satisfaction  of  my  claim 
for  professional  services  in  the  enforcement  of  the  claims  and  demands 
of  the  New  York  and  other  Phonograph  Companies  represented  by  James  L, 
Andem.  In  addition,  I  will  upon  such  settlement  give  to  your  Company 
a  release  acknowledging  satisfaction  of  my  claim  for  said  compensation, 
and  I  will  also  release  the  New  York  Phonograph  Company  and  Mr.  Andem 
from  all  claims  therefor  upon  receiving,  if  requested,  releases/from  Mr. 
Andem,  the  New  York  Company  and  Mr.  Pahnestock  to  me.  I  have  informed 
Messrs.  Tomlinson,  Tompkins  &  Tomlinson,  solicitors  for  the  New  York 
Phonograph  Company  and  Mr.  Andem,  that  I  have  agreed  with  yeu  so  to  do, 
leaving  it  entirely  optional  with  the  New  York  Phonograph  Company  and  Mr. 
Andem  to  pay  me  any  additional  sum,  so  that  settlement  can  be  made  and 
the  releases  obtained  from  me  upon  the  basis  stated,  whether  the  New  York 
Phonagrqph  Company  or  Mr.  Andem  pay  or  dc  not  pay  to  mi_any  additional 

Very  truly  yours, 



PAn-t.  — 

ih  jamoitAm 


Sunday,  April  4,1909 

Ur.  Thomas  A.  'Edison, 

Fort  i'yers,  Ela. 

Dear  Mr.  Edison: 

Since  the  handing  down  of  Judge  iToyes1  opinion  X 
have  he  on  working  almost  constantly  on  tho  Mew  York  case  from  all 
points  of  view.  It  has  been  a  time  of  intense  .anxiety  because  it 
is  the  greatest  responsibility  that  I  havo  ever  been  called  upon 
to  take.  X  have,  however,  finally  and  definitely  made  up  r.iy 
mind  that  under  all  the  circumstances  a  settlement  of  the  case  is 
the  only  safe  course  to  take.  The  fact  of  the  matter  ca  not  he 
disguised  that  Judge  Noyes’  decision  was  a  .knockout.  hlov/  under 
the  belt.  Judge  Wallace  told  no  very  plainly  that  the  Court  at 
the  outset  had  determined  to  heat  us,  and  Judge  Hatch  says  that 
the  controlling  cause  of  all  the  unfavorable  decisions,  including 
the  last,  has  been  the  apparent  equities  in  favor  of  the  defendants. 
The  mariner  in  which  the  situation  was  handled  immediately  prior 
to  and  during  the  formation  of  the  National  Phonograph  Co.  under 
the  advice  of  Judge  Hayes  was  almost  oriminally  insane,  and  no 
matter  what  arguments  were  put  forth  by  us  we  could  never  overcome 
the  effect  of  this  handicap.  A  number  of  these  considerations 
which  ooour  to  me  were  the  following: 

1.  When  the  affairs  of  the  North  American  Phonograph  Co. 
were  wound  up  by  the  Receiver,  all  the  local  contracts  were  pur- 

2.  4/4/09. .  . .  T.  A.  'Edison. 


chased  by  Ott.  These  were  not  assets,  but  were  liabilities  of  a 
most  dang  rous  character.  The  Bill  of  Sale  to  Ott  provides: 

'bind  the  said  party  of  the  second  part  (Ott)  hereby  agrees  to  per¬ 
form  the  several  stipulations,  covenants  and  agreements  made  by 
the  Horth  American  Phonograph  Co.  in  and  by  the  said  contracts." 

V/e  were  able  to  avoid  the  saddling  of  these  covenants  on  you  only 
because  the  Hew  York  Co.  did  not  clearly  prove  the  exact  relations 
of  Ott,  but  Judge  Jenks  of  the  Hew  York  Appellate  Division  told 
Judge  Hatch  that  if  this  fact  had  been  established  the  Appellate 
Division  would  never  have  rendered  the  decision  it  did.  Upon 
a  retrial  of  the  Davega  suit  or  the  trial  of  any  other  case  against 
a.  jobber  or  dealer  in  Hew  York  the  true  situation  would  undoubt- 
edly  come  out,  especially  If  they  succeeded  in  obtaining  an  open 
Commission  to  take  your' testimony. 

2.  When  the  federal  suit  was  first  brought,  instead  of 
meeting  the  issue  squarely,  a  demurrer  was  filed,  the  effect  of 
which  was  to  admit  the  truth  of  the  allegations  of  the  bill  but  to 
deny  the  legal  right  of  the  Hew  York  Co.  to  redress .  Following 
the  failure  in  this  direction,  a  pica  was  filed  alleging  that  the 
actual  complainant  was  the  Columbia  Phonograph  Co.,  but  the  proof 
obtained  in  support  of  the  plea  fell  so  flat  that  no  testimony  in 
reply  was  ever  taken  arid  the  pica  was  promptly  denied.  Thereupon 
another  plea  was  filed,  asserting  that  Andem'a  contract  was 
champertous,  but  this  also  failed  dismally.  All  of  these  actions 
were  so  apparently  frivolous  as  to  seriously  prejudioe  us,  because 
they  were  clearly  made  for  purposes  of  delay. 

3.  We  v/ere  also  prejudiced  by  the  advice  given  you  by  Judge 
Hayes,  and  also  to  I£r.  Gilmore,  to  avoid  the  service  of  process, 
and,  as  you  remember,  Mr.  Gilmore  was  actually  brought  up  for 
oontempt  of  court  and  fined.  The  exact  relations  between  you 


and  the  National  Co.  were  also  seriously  questioned. 

4.  Immediately  after  the  National  Co/  was  formed  a  number 
of  suits  were  brought  against  the  Columbia  Co.  in  Hew  Norland  the 
Hew  York  Phonograph  Co.  was  .joined  with  the  national  Co.  as  a 
oo- complainant,  upon  the  theory  that  the  New  York  Co.  was  a  licens 
for  that  territory.  All  of  these  and  other  things  gave  to  the 
case  an  apparent  taint,  which  no  amount  of  argument  could  ever 
overcome,  and  all  the  .fudges  who  ever  heard  the  case  have  seized 
upon  this  aspect  of  it.  We  were  very  fortunate  indeed  in  having 
Judge  Hazel  adopt  our  contention,  that  the  Hew  York  Company’s  were  limited  to  patents,  and  I  have  no  doubt  they  were;  but 
Judge  Hazel  reached  the  conclusion  that  the  rights  of  the  Hew 
York  Co.  had  boon  invaded,  and  the  way  in  which  he  handled  the 
expanding  procoaa  patent  shows  upon  what  thin  ice  wo  were  skating. 
Vfiion  gj:s  case  got  into  the  hands  of  Judge  Noyes  he  was  undoubt¬ 
edly  influenced  by  the  apparent  equities  in  the  defendant's  favor. 
Ouuge  Noyes  is  just  such  a  nan  an  Judge  Nandi n,  who  originally 
tried  the  Standard  Oil  case.  He  13  an  appointee  of  President 
Roosevelt  and  has  many  of  Roosevelt's  ideas.  Ho  apparently  tries 
to  get  at  what  ho  regards  as  the  inherent  right  of  a  case  a3 
distinguished  from  a  mare  legal  right,  and  his  action  in  this  suit 
shows  how  dangerous  these  ideas  are  when  put  into  effect  by  a  man 
of  power  and  authority. 

Those  were  the  considerations  that  were  put  to  me  by  all 
the  lawyers,  including  Mr.  Buckingham,  Judge  V/allace  and  Judge 
Hatch,  as  being  the  cause  of  the  present  situation.  The  question 

then  was,  could  anything  be  done  to  stem  the  tide  and  divert  it 
into  the  ohannel  followed  by  Judge  Hazel  and  if  so,  what  would  be 
the  probable  chances  of  success.  The  following  courses  were 

^  HSAROOnOHA  JAMOITAH  ^  •  A.  EuiSOn. 

op  n  to  us: 

Eirat:  To  apply  for  a  rehearing,  and  this  application  was 

actually  made  and  is  now  pending.  The  chance  of  its  being 
granted  would  be  very  remote,  and  if  granted  the  chance  of  the 
Court  reversing  itself  would  be  against  us.  As  a  matter  of  faot, 
when  the  application  for  a  rehearing  was  filed  with  Judge  Ifoyes 
by  Mr.  Church,  the  former  suggested  that  perhaps  the  Court  had 
made  a  mistake  in  morely  affirming  Judge  Hazel,  whereas  perhaps 
they  should  have  modified  his  decree  by  striking  out  all  reference 
to  patents  and  affirming  him  in  that  form.  If  tiiat  should  bo 
done,  the  situation  would  be  actually  worse  than  now,  because  at 
the  present  time  all  that  Judge  Ifoyes  says  on  the  subject  of  the 
contracts  is  nothing  more  than  an  oapreseian  of  the  opinion  of  the 
Court,  whereas,  to  mike  tho  change  ha  suggested  would  bo  to  actu¬ 
ally  embody  that  opinion  in  a  judgment. 

Second:  Apply  to  the  Supreme  Court  for'  a. writ  of  certiorari. 

This  seemed  to  be  only  a  last  resort,  because  the  chances  of  its 
being  granted  were  more  than  ten  to  one  against  us,  and  the  cost 
of  printing  alone  would  be  upwards  of  §5,000,00.  Judge  Wallace 
advised  me  that  he  saw  no  hope  in  this  course,  because  tho  Supreme 
Court  only  took  up  questions  by  certiorari  that  involved  grave 
constitutional  points  or  were  of  great  public  interest;  and  he 
told  me  that  he  had  been  informed  by  one  of  the  Justioe3  of  tho 
Supreme  Court  that  unless  a  case  came  within  this  definition 
they  would  not  take  it  up  even  if  convinced  that  a  gross  miscar¬ 
riage  od  justice  was  sought  to  be  corrected. 

Third:  We  might  go  ahead  as  before,  eliminating  such  patents 

as  Judge  Hazel  fined  us  for  using,  -which  would  mean  leaving  out 
the  styluses  until  next  Dotoherrand  putting  out  reoords  made  by 

5.  4/4/09,..  .  .. ...  ...  ,  ,  .  T.  A.  Edison. 

YttAIMOO  V(%»fKTOVIOW«l  JftHiOlrXVl 

the  vacuum  extraction  process.  We  would  then  be  brought  up  for 
Contempt  the  second  time,  and,  oven  if  the  Court  followed  Judge 
Hazel,  it  might  hold  that  the  vacuum  extraction  process  did  not 
avoid  the  patent.  Everybody,  however,  seemed  to  feel  that  there 
would  be  slight  hope  of  the  Court  taking  a  narrow  view  of  the  case, 
since  the  Court  would  be  much  more  likely  to  follow  the  opinion 
of  the  Circuit  Court  of  Appeals;  therefore,  there  seemed  to  be  but 
little  hope  in  this  direction. 

fourth:  V/e  might  tell  the  Hew  York  Phonograph  Co.  to  go 

ahead  and  do  the  business  and  if  it  was  found  that  they  did  not  do 
it  to  then  serve  notice  on  them  that  the  contracts  were  cancelled. 
Such  a'  course  would  mean  that  their  first  stop  would  be  to  hnrrass 
the  jobbers  and  dealers  to  either  get  them  out  of  the  business  or 
aloe  exact  x’oyalties  from  than.  ltather  than  pay  anything  more 
I  think  the  jobbers  and  dealers  would  inevitably  go  over  to  the 
Victor  camp  or  trike  on  the  Columbia  and  Indestructible  goods. 

I  did  not  see  anything  hopeful  in  this  course,  because  it  would 
moan  a  cognation  of  business  in  Hew  York  for  at  least  a  year,  even 
if  anything  favorable  should  ultimately  come  of  it. 

In  other  words,  I  went  over  every  contingency  that  was 
presented  and  tried  to  figure  out  a  way  by  which  the  situation 
might  be  improved,  but.  it  seemed  more  and  more  hopeless.  More 
than  this,  with  the  opinion  that  Judge  Hayes  has  handed  down,  the 
other  looal  suits  would  no  doubt  become  aotive,  with  the  danger  of 
preliminary  injunctions  being  granted  in  the  rest  of  the  affected 

Tomlinson’s  offer  was  in  the  form  of  two  letters  of  Mar oh 
27th,  one  to  Buckingham  and  the  other  to  the  national  Phonograph 
Co.,  copies  of  which  are  enclosed,  and  this  offer  expired  on 

6.  4/4/09.  T.  A.  'Edition . 


April  2nd.  It  v/as  necessary  to  either  accept  the  offer  or  take 
the  chance  of  something  happening  to  make  it  smaller,  hut  with  the 
strong  probability  that  if  nothing  favorable  occurred  or  a  further 
setback  took  place,  or  if  they  had  an  inkling  in  any  way  of  the 
extent  of  the  business,  the  money  demanded  would  be  greater.  I 
saw  no  other  course  than  to  accept  Tomlinson's  offer,  under  your 
authority,  which  v/as  done  in  a  letter  signed  by  Judge  Hatch  as  of 
Counsel  dated  April  2nd,  copy  of  which  I  enclose.  Before  accept¬ 
ing  the  offer  I  had  Judge  Hatch  and  Hr.  Buckingham  each  write  me 
a  letter  recommending  a  se  ■ tlement,  and  I  enclose  both  of  those 
letters.  You  will  note  that  Hr.  Buckingham's  letter  was  written 
the  day  he  advised  me  of  Tomlinson's  offer,  and  he  says:  "I 
should  accept  the  proposed  settlement  if  the  business  were  nine 
and  it  were  say  money  that,  were  to  be  paid  for  it.”  Having  ac¬ 
cepted  Tomlinson's  offer,  .31  then  determined  that  we  must  have  some 
sort  of  a  contract  that  would  keep  them  from  changing  their  mind 
but  which  would  not  necessarily  bind  us,  and  on  Saturday  afternoon 
these  contracts  were  executed,  and  copies  are  enclosed.  The 
longer  contract  provides  for  the  settlement  of  everything  except 
the  Hyman  suits  for  §405,000,  providing  the  papers  are  acceptable 
to  Judge  Hatch.  Shis  provision  will  enable  us  to  back  out  if  we' 
wish  to  but  at  the  same  time  will  prevent  them  from  doing  so, 
because  whatever  papers  they  present  to  us  must  at  least  bear  the 
evidence  of  good  faith.  I  think  substantially  all  the  points  are 
covered  by  the  oontract ,  but  the  fifth  paragraph  provides  that 
they  will  execute$Hany  and  all  other  papers  that  may  be  reasonalily 
necessary  to  carry  out  the  purposes  of  this  settlement.”  The 
shorter  contract  provides  for  the  settlement  of  the  Hyman  suits 
for  the  consideration  of  $20,000,  consents  to  the  discontinuance 
of  these  suits  being  given  us  by  the  Hew  York  Co,  This  you  will 

^  •  i/i/09  ^ma<,MOo  hrahoouohr  JAHOITAH  T.  A.  "Edison.  v 

note  is  a  slight  variation  from  Tomlinson's  original  plan  as 
accepted  by  Judge  Hatch.  Tomlinson  originallt  proponed  that  we 
sh/mld  pay  them  $425,000  and  except  the  Hyman  suits  absolutely, 
leaving  us  to  take  care  of  those  suits  and  to  try  to  dispose  of 
them  because  of  Hyman’s  champortous  agreement,  which  is  quoted  in 
full  in  the  contract.  If  we  failed  to  prove  the  olitunpertouu 
nature  of  this  contract,  Hyman  would  go  a'ead  with  the  Davsga 
suit  now  pending  before  the  Court  of  Appeals  at  Albany.  I  am 
told  that  the  Davcga  appeal  was  irregularly  taken  and  can  be  dis¬ 
posed  of  as  a  natter  of  course.  Thin  would  make  it  necessary 
for  Hyman  to  go  ahead  with  one  of  the  other  suits,  and  the  ques¬ 
tion  would  then  be  presented  whether  the  Trial  Court  would  follow 
the  Appellate  Division,  holding  t .ha t  tho  suits  involved  a  federal 
question,  or  would  follow  the  TJ.  S.  Circuit  Court  of  Appeals ,  in 
which  Judge  iloyes  practically  decides  t’:at  the  questions  after  all 
are  contract  questions.  It  seems  to  be  generally  believed  that 
the  State  Trial  Court  would  follow  the  Appellate  Division,  and  on 
appeal  again  to  the  Appellate  Division  it  would  be  reasonable  to 
expect  that  they  would  still  adhere  to  their  former  opinion,  so  that 
a  final  review  of  the  questions  would  be  probably  deferred  until 
a  second  appeal  to  the  Court  of  Appeals  at  Albany  had  been  taken, 
which  would  take  three  or  four  This  course,  however,  was 

not  absolutely  and  completely  certain,  and  therefore  we  thought  it 
might  be  better  to  have  the  Hew  York  St!.  the  State  Court 

suits.  Under  the  Hew  York  law  this  can  be  done  even  though  sin 
attorney  has  a  contract  providing  for  a  contingent  fee,  and  in 
the  absence  of  fraud  the  attorney  is  limited  in  his  recovery  to 
his  proportion  of  the  settlement.  It  3eemed  to  me  that  a  settle¬ 
ment  at  $20,000  could  not  possibly  be  questioned  as  fraudulent, 
because,  as  the  State  Court  cases  now  stand,  they  are  admittedly 

®  *  4/ 4/09  .  '  V  A  15,04  „  0n 

dead,  in  view  of  the  deoision  of  the  Appellate  Division,  and  a 
settlement  could  not  reasonably  take  into  consideration  the 
possible  contingency  that  the  Court  of  Appeals  might  eventually 
reverse  the  decision  of  the  Appellate  Division.  Tomlinson  was 
willing  to  make  this  concession,  hut  hr  insisted  that  if  the 
New  York  Co.  should  attempt  to  settle  the  cases  by  consenting  to 
their  discontinuance  v/c  should  give  the  New  York  Co.  an  agreement 
to  indemnify  them  against  any  claim  that  Hyman  might  have  for 
professional  services.  I  saw  no  serious  objection  to  this, 
because  vie  will  simply  be  indemnifying  ourselves,  since,  when  the 
settlement  i3  completed,  wc  will  have  control  of  the  New  York  Co.; 
but  the  matter  will  bo  laid  before  .Tudge  Hatch  when  he  returns  on 
Tuosuay,  so  that  wo  maybe  sure  to  have  his  approval.  It  is 
interesting  in  this  connection  to  note  that  Tomlinson,  for  all  his 
ahrev/cuiess,  failed  to  see  that  the  carrying  out  of  the  contraot 
:Cos  the  ^ettlem\j«t;-?d,efrfcS«r-:Sta±e  suits  should  be  made  contingent 
upon  t.-ie  carrying  out  of  the  contract  for  the  rest  of  the  litiga¬ 
tion,  and  an  interesting  question  v/ould  be  presented  if  we 
accepted  the  $20,000  contract  and  did  not  accept  the  $405,000  con¬ 
tract.  I  do  not  think,  however,  that  any  substantial  and  perma.- 
nent  advantage  could  be  gained  by  that  course,  with  the  probabil-  . 
ity  that  in  the  end  we  would  find  ourselves  in  a  worse  position 
than  now. 

Finally,  the  contracts  executed  yesterday  include  a  letter 
from  ,‘.Tr.  Andem  to  me,  in  which  he  agrees  to  consent  to  the  set¬ 
tlement  and  to  release  any  interest  he  might  have  in  the  State 

The  settlement  when  made  will,  I  believe,  be  a  substantially 
oomplete  and  effective  settlement  of  all  of  these  litigations; 
certainly  we  will  never  hear  from  Andem  again.  The  interests  of 

the  other  local  companies  are  settled,  under  Andem' s  contracts 
with  them  giving  him  authority  to  do  so,  and  the  original  con¬ 
tracts  will  "bo  attached  to  the  settlement.  Enough  will  he  paid 
Andem  to  enable  him  to  oomply  with  the  conditions  of  his  contracts, 
except,  as  I  have  already  advised  you,  in  the  case  of  Kentucky 
and  Kansas,  where  the  contracts  provide  that  the  cases  must  not  he 
settled  without  the  consent  of  the  local  company.  Andem  tcllo 
me  that  these  local  companies  are  all  defunct  and  that  great 
difficulty  was  experienced  in  getting  together  enough  of  the 
original  members  to  author!  sx  his  contracts,  so  that  he  will  onl3>- 
have  to  deal  with  s,  few  men,  and  he  expects  to  settle  with  the:,  on 
some  sort  of  a  compromise.  X  think  he  told  me  th:  truth,  hut  if 
not,  wo  would  certainly  have  ;ui  apparently  good  defense  to  any 
further  actions,  no  that  if  further  suits  wore  ever  brought  by 
the  other  local  companies  the  effectiveness  of  unat  defense  would 
have  to  he  first  determined  before  the  suits  even  started.  This 
would  take  a  number  of  years,  and  when  the  suits  did  start  they 
would  be  confronted  by  the  question  of  laches;  by  the  difficulty 
of  proving  title,  by  their  failure  to  protest  against  the  invasion 
of  their  territory;  by  the  lack  of  a.  confirmation  agreement  and 
by  numerous  other  considerations  that  distinguish  all  the  other 
suits  from  the  Hoyt  York  and  ilew  England  suits.  X  feel  absolutely 
convinced  tint  no  one  will  bo  found  who  would  be  willing  to  spend 
the  money  to  carry  on  such  suits  in  the  face  of  the  difficulties 
which  will  bo  presented.  Of  course,  there  were  other  local 
companies  that  are  not  included  in  the  settlement,  but  with  them 
Andem  had  no  contracts.  These  companies  included  Pennsylvania, 
Colorado,  Utah,  Wyoming,  California,  Montana,  South  Dakota, 
Georgia,  Florida,  louisina  and  other  States,  hut  they  have  all 

"been  dead  for  :aany  years,  and  If  the  defense  of  laches  ever  ap¬ 
plied  it  would  apply  to  them.  Consequently,  I  regard  the  set¬ 
tlement  as  being  conclusive,  with  the  single  exception  of  the 
Hyman  suits,  and  as  to  these  X  think  our  position  ia  so  strong 
that  if  Hyman  can  over  recover  anything  it  will  "be  limited  to 

I  have  tried  to  tell  you  just  what  ray  ideas  have  boon  and 
v,-hy  I  had  reached  my  present  views.  If  we  do  not  make  a  set¬ 
tle  ant  we  have  the  certainty  before  us  of  on  accounting,  the 
cost  of  which,  as  I  have  explained,  might  bo  $100,000,  and  the 
recovery  in  which  might  bo  a  large  amount.  The  cost  of  an  ac¬ 
counting  can  therefore  be  deducted  as  a  certain  expense,  and  to 
fight  out  the  other  litigations  might  involve  as  much  eost.  To 
get  rid  of  these  litigations  removed  a  black  cloud  that  has  hung 
over  the  business  for  years  and  makes  it  possible  to  reorganise 
the  business  under  one  corporate  name  with  you  as  the  real,  and 
acknowledged  head.  hr.  Wes tee  tells  me  that  in  this  way  probably 
§100,000  yearly  can  be  saved,  nnd  the  adverticing  advantage  would 
be  great . 

7/e  have  arranged  with  the  bank  to  pay  off  the  §120,000  loan 
at  the  rate  of  §15,000  par  month,  30  that  talcing  into  account  the 
§150,000  already  accumulated  the  matter  v/ill  bo  closed  up  in 
twenty  months.  In  this  connection  I  should  say  that  I  have  Hr. 
Hicks'  written  promise  to  give  us  a  release  of  any  claims  that  he 
might  have  for  430,000,  payable  In  three  non-interest  bearing  . 
notes  for  $10,000.  each  for  three,  six  and  nine  months. 

Unless  I  hear  from  you  to  the  contrary  I  v/ill  therefore  go 

ahead  with  all  the  papers  as  above  outlined  and  will  close  up  the 
matter  probably  by  nestt  Thursday  evening,  and  certainly  by  Kriday. 
I  hope  you  will  not  objeot  to  my  doing  so,  because,  having  spent 

11  4/ 4/09 .  T.A.  Edison. 


more  than  two  solid  weolcs  in  thinking  ov-.-r  the  situation,  I  am 
convinced  that,  distasteful  as  the  settlement  1b,  it  is  the  "beat 
thine  to  do. 

fours  Tory  truly, 




P^Ke-CA  .  —  - 

Mr.  W.  H,  Miller:  5/12/09. 

It  was  agreed  to-day  at  a  conference  tie  tween  Mr.  Tjlclison 
and  the  Hxecutive  Committee  and  also  Mr.  Aylsworth  and  Hr.  Aiken, 
that  we  should  go  ahead  right  away  with  the  hornless  machine 
for  taking  the  Standard  and  Ambcrol  records;  and  at  the  same  time 
push  forward  as  rapidly  as  possible  the  machine  for  taking  the 
standard  size  record  and  also  the  record  of  large  diameter. 
Regarding  the  large  record,  therefore,  arrange  to  proceed  with  the 
making  of  a  preliminary  list  of  25  masters,  submitting  to  me  at 
as  early  a  date  as  possible  such  an  arrangement  as  your  people  may 
decide  will  make  an  attractive  list.  By  this  I  mean,  the  number 
of  orchestral,  band,  instrumental  and  vocal  piecos  that  you  would 
have  in  a  list  of  25  p^jj|%ons.  These  selections  are  to  be  ell 
high-class ,  and  if  possible  should  contain  some  of  the  best-known 
pieces  of  the  masters,  such  as  Bsethcven,  Bach,  Handel,  Wagner 
and  others. 

In  the  meantime  we  are  going  right  ahead  building  spinning 
machines  for  making  the  large  records  as  soon  as  the  masters  are 
turned  over  to  us . 

Bet  me  urge  upon  you  the  importance  of  going  right  ahead 
with  this  work  without  delay. 

BBD/lW  I>.  b.  D. 

/l kti.  <ij njcr^ 


Hew  York  City . 

June  15  th,.  1900V' 

'  R 

jUi,  i  •;  ]!)osj 
FRANK  l.  i)YcR,  J 

Mr.  Thomas  A.  Edison, 

Edison  Laboratory , 

Orange,  N.  J. 

My  dear  Mr.  Edisons- 

The  National  Association  of  Talking  Machine  Jobbers 
will  hold  their  second  annual  convention  at  Atlantic  City,  July 
Sth,  7th  and  8th.  The  closing  event  of  the  convention  will  be 
a  banquet  on  the  evening  of  July  8th,  to  be  held  at  one  of  the 
leading  hotels. 

Most  of  the  Edison  jobbers  are  members  of  the  Associa¬ 
tion  and  the  greater  port! on  will  be  present  at  the  convention. 

The  As  so  cia  ti  o  n 

sent  at  the  above  banquet  ...  _ 

tance  will  be  appreciated  by  all. 

x tends  to  you  an  invitation  to  be  pre- 
their  gueBt  of  honor  and  your  ac cep- 

last  year  we  made  the  same  request,  but  unfortunately 
y°“£n engagements  during  that  time  made  it  impossible  for  you  to 

„  .  "i11  not  be  necessary  for  you  to  address  the  jobbers, 

if  you  desire  to  be  a  silent  participant,  but  we  want  you  with  us 
far  what  could  make  a  gathering  of  phonograph  men  more  complete 
than  the  presence  of  the  "Father  of  the  industry"? 

From  ray  recent  conversation  with  you  in  the  factory  I 
know  you  have  great  faith  in  the  future  of  the  phonograph  busi¬ 
ness  and  this  is  the  kind  of  people  we  want  at  Atlantic  City. 

.  .  .  ?°?Vt  y°u  kin<ny  ^ve  th-is  ye**1,  “08 1  careful  consider¬ 

ation  and  let  .me  have  your  acceptance  if  at  all  possible. 

An  early  reply  will  be  greatly  appreciated. 

Kindly  address  me  at 

97  Chambers  St. , 

Hew  York  City. 

Chairman/  Commit  toe  o£\  Arrangements* 

June  If!,  1909. 

Mr,  J.  Newcomb  Blackman,  ^ 

97  Chambers  st., 

New  York  City , 

My  dear  Mr.  Blackman: 

Since  writing  you  to-day  accepting  your  kind 
Invitation  to  attend  the  Banquet  of  the  National  Association  of 
Talking  Machine  Jobbers,  I  have  seen  Mr.  TSdioon  with  reforenoo  to 
your  invitation  to  him  and  have  persuaded  him  to  make  an  exception 
to  hie  usual  rule  and  accept,  and  I  am  glad  to  tell  you  that  ho 
will  also  be  present  at  the  Banquet,  You  understand,  of  coupes, 
that  he  absolutely  refuses  to  make  a  public  address,  bo  that  1 
will  count  on  your  respecting  hia  wishes  in  this  matter, 

Yours  .'very  truly, 

HH/I  m 

Johnson  that  your  work  in  the  copyright  natter  will  end  on 
July  1st.  Before  that  date  I  think  it  is  due  Mr.  Johnson  that 
you  should  prepare  a  detailed  report  addressed  to  him  and  to  me 
telling  exactly  what  you  have  done,  what  publishers  you  have 
visited,  what  arrangements  have  been  made  with  them,  how  they 
view  the  copyright  situation  generally  and  what  concessions,  if 
any,  they  are  willing  to  make. 



June  2S,  1C09, 

Ur,  U.  R.  Johnson,  President, 

Victor  Talking  Machine  Co., 

Coxndon,  jt,*j. 

i.ty  dear  2ir.  Johnson; 

Yours  of  the  2 3rd  inst.  has  been  received, 
and  an  you  leave  the  matter  to  me  I  will  arrange  to  discontinue 
Vr.  Goodwin  on 'July  1st. 

I  think,  however ,  that  there  should  os  an  understanding  between 
us  on  one  point.  JJr,  Coociwin  lias.  3een  practically  all  of  the  music 
publishers,  and  almost  without  exception  they  have  agreed  to  our 
,ise  °i’  anything  they  any  copyright  after  July  1st,  Some  of  them 
have  consented  to  modifications  from  the  striot  letter  of  the  law, 
such,  for  example,  of  allowing  a  rebate  of  10^  to  cover  returned 
records,  and  collect  royalties  only  on  records  sold,  regardless 
of  the  number  manufactured.  It  is  evident  to  me  that  we  must 
show  the  publishers  that  the  market  for  their  publications  is  mnii 
and  that  in  a  certain  sense  we  are  independent  of  them.  Of 
course,  there  will  inevitably  be  mary  copyright  "that  v/e  will  have 
to  use,  but  I  think  that  we  should  use  as  few  of  them  as  possible. 
Wien  the  publishers  realise  that  there  is  not  so  micih  money  in 
this  proposition  as  they  think,  v/e  may  be  able  to  smoko  fairer 
and  more  satisfactory  terms  with  them,  This  result  can  be 
reached,  however,  only  by  the  two  companies  standing  together 


a.  6/as/09fftmoNAL  PHONOOR  APH  OOMPANY  R  ♦  tTOhtt £1  011  • 

and  agreeing  among  ourselves  as  to  what  copyright  publications 
we  intend  to  U3e,  leaving  it  for  Mr,  miler  and  Mr,  Childs  to 
decide  what  publications  they  want  and  both  companies  putting  them 
out  at  substantially  the  same  time.  By  using  the  same  copyright 
selections  wo  obviously  will  employ  a  fewer  number  than,  if  p/e 
worked  independently  and  you  toot  some  and_we  others.  l,et  mo 
inovf  whether  you  think  ouch  an  arrangement  as  I  propose  would  meet 
with  your  approval. 

Yours  very  truly,  , 





My  dear  Mr.  Dyer:- 

Your  letter  of  June  25th,  concerning 
•Goodwin  and  the  copyright  situation,  received: 

I  was  not  under  the  impression  that  any  great 
amount  of  co-operation  was  further  necessary  between  the 
Companies  on  the  copyright  question.  If  there  had  been 
anything  like  a  war  developed  of  course  co-operation 
would  have  been  necessary;  so  far  as  I  can  see,  however, 
the  Companies  seem  to  be  disposed  to  act  most  eminently 
fair,  and  the  thought  I  had  in  mind  in  approaching  them 
was,  after  finding  a  selection  that  we  desired  published 
approach  the  publisher  with  a  contract  in  which  the  man¬ 
ufacturing  clauses  are  waived  and  in  which  the  settle¬ 
ments  for  the  publication  are  to  be  made  quarterly  based 
on  sales  at  such  terms  that  rebates,  returns,  etc.,  would 
be  taken  care  of  automatically.  We  have  come  to  no  de¬ 
cision  on  this  point  as  yet,  but  it  is  my  opinion  that, 
with  the  exception  of  a  few  of  the  more  successful  pub¬ 
lishing  houses,  we  will  be  able  to  make  terms  which  are 
very  satisfactory  to  us  regardless  of  the  terms  imposed 
by  the  law. 

It  is  very  evident  that  there  is  a  decided  ad¬ 
vantage  to  the  publisher  in  the  matter  of  selling  cheap 
music  to  have  the  selections  listed  in  the  talking  machine 
catalogues.  It  is  also  evident  that  the  talking  machine 
people  can  list  but  comparatively  few  unless  they  choose 
to  lose  money  by  increasing  their  recording  expenses,  ouV 
of  all  proportion  to  their  sales.  Therefore  it  will  nat- 

S’.  L.  D. 


urally  follow  after  this  point  is  fully  demonstrated  that 
the  publishers  will  seek  to  have  their  matter  published  by 
some  talking  machine  company  or  all.  When  that  time  ar¬ 
rives  we  will  certainly  be  able  to  make  satisfactory  ar¬ 
rangements  . 

The  thing  that  1  feared  most  was  that  the  publish¬ 
ers  would  form  some  sort  of  a  combination  whereby  they  could 
hold  us  up  acting  in  concert.  As  they  do  not  seem  disposed 
to  do  this  I  think  we  had  better  be  very  careful  what  sort 
of  combinations  we  make.  I  do  not  believe  we  are  in  a  posi¬ 
tion  to  wave  the  red  flag;  we  certainly  are  in  a  position  to 
adjust  our  businesses  to  the  best  possible  point  of  satisfac¬ 
tion  under  the  existing  conditions.  I  do  not  believe  it 
would  impair  the  strength  of  our  position  at  all  to  concede 
at  first  to  every  demand  within  the  law  that  the  publishers 
may  make.  The  business  cannot  be  regulated  by  the  law  and 
it  will  not  be  regulated  by  the  law.  We  must  know  exactly 
what  we  want  to  do  before  we  decide  to  act;  therefore,  it  is 
my  opinion,  as  we  are  not  fully  informed  as  to  what  the  nat¬ 
ural  outcome  of  the  change  of  conditions  will  be,  that  we 
had  "better  start  in  on  the  standpoint  as  prescribed  by  the 
law,  with  the  exception  of  the  modification  of  the  manufac¬ 
turing  and  settlement  clauses. 

The  great  danger  we  had  to  face  was  a  combination 
withholding  the  rights  from  us.  I  do  not  regard  such  a 
combination  would  have  been  practical  or  lasting,  but  tem¬ 
porarily  it  might  have  worked  great  damage  and  caused  us 
untold  anxiety  and  confusion.  Of  course  any  movement  on 
our  part  whereby  we  in  combination  should  undertake  to  force 
some  radical  bargain  down  the  throats  of  the  publishers 
would  certainly  have  the  effect  of  throwing  them  together 
and  might  even  now  create  a  condition  whereby  we  could  not 
secure  the  rights. 

As  I  have  explained  above,  I  do  not  think  further 
co-operation  is  necessary;  I  think  we  can  secure  the  modifi¬ 
cations  which  are  necessary  and  satisfactory  to  both  of  us 
by  working  on  independent  lines,  although  there  would  prob¬ 
ably  be  great  benefit  in  keeping  in  touch  with  each  other. 

Vie  have  done  nothing  as  yet  and  would  be  pleased  to  hear 
from  you  on  the  above  subject  before  we  approach  the  pub¬ 
lishers  independently. 

Certainly  if  we  do  decide  to  co-operate  with  each 
other  and  approach  the  publishers  directly  we  must  approach 
them  in  a  friendly  spirit  and  not  attempt  to  hammer  down 
their  royalties  or  anything  of  that  sort  at  first.  If  we 
require  lower  royalties,  as  of  course  we  will,  the  publish¬ 
ers  are  more  likely  to  be  successful  in  hammering  them  down 
themselves  a  little  later  than  we  would  be  in  hammering  them 
now.  This  is  one  of  the  times  when  it  pays  to  wait;  one  of 
the  occasions; I  think, when  you  win  by  waiting. 

Yours  verytruly, 

__ _ _ _ _  __________  President. 

June  29,  1909. 

Mr.  Byer: 

Calkins  &  Holden  and  I  have  spent  considerable  time  in 
discussing  advertising  plans  for  the  season  of  1909-10.  We 
have,  by  no  means,  gone  over  all  of  the  details  necessary  to 
the  different  kinds  of  advertising,  for  these  cannot  be 
completed  much  before  September.  By  details,  I  mean  the  selection 
of  papers,  position,  illustrations,  copy  and  similar  features. 

We  have  decided  to  recommend  the  expenditures  given  below  and 
will  want/ your  approval  of  them  before  you  go  abroad. 

I  appreciate  that  for  the  first  three  or  four  months 
of  the  time  covered  by  these  expenditures,  it  will  not  be  easy 
to  meet  the  bills  of  approximately  $25,000  per  month.  I  believe, 
however,  that  this  advertising  is  the  most  important  feature 
of  our  business  and  that  we  ought  to  do  the  advertising  here 
referred  to  even  though  we  had  to  finance  it  in  some  special  way. 

We  have  deoided  to  recommend  the  following  expenditures: 

Monthly  Magazines  and  Weekly  Publications  $125,000 

Newspapers  -  -  -  -  -  --  --  —  _____  i4o)oOO 

National  Earm  Papers  10,000 

Canada  Advertising -  -  --  —  -  _  12, 000 

Bulletin  Boards  -------------  -  -  13,000 


This  total  will  be  $300,000  when  the  Incidental  expenses 
of  illustrations,  electros,  etc.,  have  been  made. 

In  magazine  advertising,  we  want  to  make  two  full  pages 
the  unit  of  space,  using  this  space  in  regular  size  magazines  and 
an  equivalent  amount  in  weeklies  like  Saturday  Evening  Post, 
Collier 1 s ,and  also  in  monthly  magazines  of  larger  size.  £he 
attached  list  shows  how  we  would  like  to  use  the  best  publications 
in  this  class.  This  list  provides  for  an  expenditure  of 
approximately  $120,000.  $5,000  will  be  spent  in  a  limited  way 

among  from  six  to  ten  other  publications. 

We  want  to  make  two  pages  the  unit  in  the  coming  season  for 
the  reason  that  it  seems  necessary  to  have  that  space  to  tell 
our  story,  and  the  continued  use  of  two-page  copy  puts  the 
manufacturer  in  the  biggest  advertising  class.  We  have  prepared 
this  list  with  the  idea  of  impressing  the  country  with  the  bigness 
of  our  proposition  and  for  the  purpose  of  itB  effect  upon  the 
trade.  We  are  planning  a  newspaper  campaign, to  supplement  the 
magazine  advertising  ,in  upwards  of  300  cities  of  10,000  and  more 

We  have  planned  to  make  a  10,000  line  contract  with  the 

newspapers  and  make  a  schedule  covering  a  period  of  eifht  months, 
beginning  with  the  first  Monday  in  October  and  ending  with  the 
last  part  of  May,  1910'.  Our  present  plan  is  to  run  three 
advertisements  a  week.  The  first  three  weeks  of  each  month  we  will 
run  two  3"  advertisements  and  one  12"  advertisement.  During  the 
last  week  of  each  month,  v/e  will  increase  the  size  of  the  large 
advertisement  from  12 11  to  30 11 ,  using  the  increased  space  for  a 
better  stoiy  about  new  Records. 

advertisements  will  be  used  to  show  a  single  sentence 
referring  to  one  or  another  of  the  artists  or  combinations  making 
Records  for  us. 

4.1.  advertisement  will  be  devoted  to  Phonograph  copy  and 

the  30  advertisement  will  be  a  combined  Phonograph  and  Record 
advertisement.  We  hope  to  get  special  position  for  all  of  these 
advertisements  so  that  even  the  3"  space  will  be  read  by  a  large 
proportion  of  the  newspaper- reading  public. 

We  will  limit  our  farm  paper  advertising  to  from  three  to  five 
publications  having  national  circulation  of  the  same  kind  as  the 
Saturday  Evening  Post.-  V/e  will  use  these  for  general  publicity 
just  as  we  do  the  Post.  We  have  decided  that  the  best  use  of  a 
large  list  of  farm  papers  calls  for  the  use  of  copy  that  will 
interfere  with  the  Babson  advertising.  Consequently,  we  have 
decided  to  practically  leave  the  farm  paper  field  to  the  Babsons, 
together  with  the  mail  order  publications  they  have  been  using. 

It  seems  wise  to  continue  to  advertise  in  Canada  and  we 
cannot  accomplish  much  for  a  less  sum  than  $12,000,  which  was  the 
amount  spent  in  the  season  just  closing. 

The  $13,000  spent  for  railroad  bulletins  is  already  contracted 
for  and  cannot  be  changed. 

The  foregoing  takes  no  account  whatever  of  the  advertising 
expenditure  being  made  through  the  Babsons  which  will  cost  us 
from  $15,000  to  $25,000  next  year  according  to  the  volume  of  their 

Before  you  sail  for  Europe,  I  hdpe  to  be  hble  to  Bhow  you 
proofs  of  the  kinds  of  newspaper  advertisements  we  intend  using. 

I  will  be  glad  to  di3( 
any  time  you  may  name. 

j  the  details  of  this  memorandum  at 

L.  C.  McChesn ey. 



July  1,  1909. 

Mr.  p,  1.  Dyer: 

I  return  herewith  Mr.  Johnson's  letter  in  which  he  states  he 
does  not  think  any  oo-operation  is  necessary.  Speaking  now  for  our 
own  Company,  perhaps  independent  aotion  will  he  better,  for  as  we  make 
three  or  four  to  one  of  Beoords,  we  will  always  have  the  advantage  as 
to  terms.  The  publishers  will  soon  learn  that  ours  is  the  desirable 
catalogue,  and  they  will  be  making  us  the  favorable  proposition. 

As  I  remember  your  letter  to  Mr.  Johnson,  you  wanted  him  to 
co-operate  for  a  time  at  least,  in  making  a  very  limited  use  of  new 
copyrighted  matter.  Mr,  Johnson  seems  to  be  afraid  of  this,  but  he  is 
shrewd  enough  in  the  last  two  lines  of  his  letter  to  advise  you  to  wait, 
and  let  him  do  sb  he  thinkB  best.  If  he  won’t  enter  into  an  agreement 
to  let  the  labratorieB  inform  eaoh  other  of  what  they  intend  to  do,  and 
follow  out  your  scheme  to  only  use  suoh  new  matter  as  appears  to  be  very 
likely  to  be  desirable,  then  you  will  gain  nothing  and  will  probably  not 
feel  disposed  to  impair  the  progressive  oharaoter  of  your  catalogue. 

.  .  .  ^  *  have  had  with  Mr.  Johns  on,  I  think  it  would 

be  hard  to  hold  him  baok  with  the  mutual  arrangement  you  suggested. 

He  claims  in  his  letter  to  be  afraid,  but  X  suspect  the  reason  is  he 
does  not  want  to  be  bound  by  any  oompaot  that  will  hamper  his  ambition 
to  appear  progressive.  It  waB  not  your  proposition  to "force  any  rad¬ 
ical  bargain  down  the  throats  of  the  publisher  s'1  when  you  decided  to 
start  in  with  new  stuff,  but  rather  not  to  use  too  much  of  it  in  the 
??  TLf£y-M0Sth?i»  SWs  you  might  make  olear  to  Mr.  Johnson  again,  and 
•  if  he  will  "wait"  in  this  way,  it  is  all  you  have  asked. 


At  your  request,  I  havo  examined  the  cabinet  or 
"hornless  machine"  which  was  in  the  Committee  Room.  At  present 
there  is  no  horn  in  this  machine,  but  I  understand  that  it  is 
proposed  to  use  a  sectional  horn,  the  sections  being  united  by 
the  horizontal  partition  which  supports  the  phonograph,  the  bell 
portion  of  the  large  section  being  secured  to  the  front  wall  of 
the  cabinet  in  registry  with  the  opening  therein,  the  small 
sootion  to  be  hinged  to  the  partition  so  »3  to  be  movable  in  a 
vertical  plane. 

As  regards  the  design  of  the  cabinet,  its  lines  are 
very  similar  to  those  covered  by  certain  of  tho  design  patents 
of  tho  Victor  Company.  While  there  is  some  difference  in  the 
bottom  lines,  the  lines  of  the  sides  and  top  are  practically 
identical.  I  refer  particularly  to  tho  use  of  the  large  front 
corner  posts  having  ornamental  carving  & the  uoe  of  a  cover  which 
is  practically  exactly  the  shape  of  the  Victor  cover,  although 
it  lacks  some  of  the  ornamentation  thereof/  I  do  not  think  that 
the  doing  away  with  this  ornamentation  is  sufficient  to  avoid 
the  design  patents,  because  the  shape  of  the  oabinot  and  cover 
is  a  matter  of  design,  and  see  no  reason  why  the  design  patent 
should  not  cover  these  novel  shapeB  as  well  as  the  mere  orna¬ 
mentation  which  would  not  roqiire  so  high  an  order  of  invention, 

X  -think  it  will  be  necessary  to  do  away  with  the  en¬ 
larged  oarved  corner  posts,  and  change  the  shape  of  the  cover. 

The  whole  appearance  of  tho  cabinet  would  be  altered,  and  would 

as  to  make 

produce  a  new  design,  if  the  corners  were  cut  off 
an  ootagonal  arrangement  shown  in  this  sketch.  Have  you  ever 
considered  the  desirability  of  such  a  shape?  You  will  observe 
that  such  a  cabinet  occupies  very  much  less  space  in  a  room 
when  it  is  set  diagonally  into  tho  corner  of  a  room,  and  which 
is  a  position  quite  coim|only  occupied  by  instruments  of  this 
character  as  well  as  musio  cabinets.  It  would  certainly  seem 
to  be  a  good;: talking  point  in  selling  the  machine,  so  that  in 
addition  to  avoiding  the  design  patents,  it  would  aid  our  sales¬ 
men  and  those  of  our  dealers,  and  of  course  we  need  all  the 
talking  points  that  we  can  get,  as  the  Victrola  machine  is  a 
difficult  proposition  to  compete  with  commercially. 

As  regards  Miller  reissue  patent  Ho.  12,963,  the 
structure  infringes  about  two-thirds  of  the  claims  of  this 
patent,  and  I  think  it  will  be  necessary  to  radically  modify 
the  internal;  features  of  the  cabinet.  I  am  aware  that  the  mot 
courts  do  not  look  with  favor  upon  the  idea  of  a  patentee  re¬ 
issuing  his  patent  so  as  to  broaden  the  Bane  to  oover  devioes 
which  have  been  put  out  in  the  interval  between  the  granting  of 
the  patent  and  the  granting  of  the  reissue,  but  I  do  not  see 
how  such  a  defence  could  be  raise*,  in  the  present  case  because, 

we  did  not  put  out  any' ‘cabinetimachlnel:havihgvan;,encrosedfi 

horn  in  this  Interval,  and  while  some  of  the  broadened  olaimB 
probably  cover  our  slot  machines,  the  said  claims  are  merely 
invalidated  by  these  machines  beoauso  they  were  put  out  long 
before  either;  the  reissue  or  the  original  patent,  and  were  in 
public  raise  more  than  two  years  prior  to  the  original  filing 

date.  But  this  slot  machine  has  little  hearing  on  the  ques¬ 
tion  of  invention  in  enclosing  the  horn  within  the  cabinet. 

To  shov/  this  idea  we  shall  have  to  rely  upon  dolls  and  other 
devices  containing  phonographs,  and  upon  British  Patent  ITo, 
16,897  of  1900. 

I  think  that  the  safest  plan  is  to  make  a  cabinet 
having  only  one  compartment,  mounting  everything  in  that,  this 
being  old,  as  for  instance,  see  patent  ITo.  470,477  which  shows 
a  phonograph  having  operating'  mechanism,  ouch  ac  a  motor  and  a 
stationary  tapering  sound  amplifier,  all  within  one  compart¬ 
ment.  I  submit  a  sketch  showing  ay  idea  of  a  structure  upon 
which  v/e  could  make  the  strongest  defence  to  a  suit  on  the 
Miller  patent.  This  structure  does  not  avoid  all  of  the  claims 
but  it  avoids  almost  all  of  them,  and  I  think  that  v/e  Bhould 
stani  a  very  good  chance  of  winning  a  suit  on  the  Hiller  patent 
based  on  such  a  structure  as  this  on  the  grounds  that  there 
would  be  no  invention  in  curving  the  horn  c  of  Criswell,  so  as 
to  bring  it  around,  underneath  the  motor,  such  change  having  no 
acoustic  effect,  but  being  merely  done  to  make  a  smaller  cabi¬ 
net  and  utilize  space  that  would  otherwise  be  wasted.  In  this 
structure  the  bed-plate  of  the  phonograph  rests  upon  and  is 
secured  by  scr ews  to  four  brackets,  and  there  is  only  one  com¬ 
partment,  although  false  work  may  he  laid  upon  the  brackets 
to  cover  or  oonoeal  the  horn,  and  prevent  tho  dropping  of  small 
objects  into  the  bottom  of  the  compartment.  This  false  work 
should  be  readily  removable,  so  that  we  would  have  no  difficulty 

In  convincing  the  court  that  that  there  is  only  a  single  com¬ 
partment  ,  and  that  this  false  work  does  not  constitute  a  par¬ 
tition  within  the  moaning  of  the  patent.  She  horn  3hotild  he 
fixed  and  should  not  he  sectional,  and  should  have  no  movable 
part.  She  stylus  should  he  movable  out  of  engagement  with  the 
record  by  a  device  for  lifting  the  floating  weight.  This 
would  not  be  greatly  different  from  that  of  the  structure  of 
the  Criswell  patent  which  lifts  the  stylus  lever  (See  Figure 
1)  by  a  rod  o£. 

You  should  also  consider  the  desirability  of  using  | 
inst  ead  -  Of  . -  a  -fixed  Si©?®,  a  horn  oscillating  on  an  axis  concen¬ 
tric  with  the  bell  of  the  horn,  as  suggested  by  Hr,  Lewis . 

Such  a  structure  would  avoid  some  of  the  claims  of  the  Hiller 
patent  that  would  be  infringed  by  a  fixed  horn  construction, 
but,  on  the  other  hand,  the  fixed  horn  avoids  a  good  many  claimB 
that  would  be  infringed  by  Mr.  Lewis's  scheme,  so  that  it  3eema. 
to  be  a  stand  off,  and  you  should  adopt  whichever  form  you 
consider  preferable  from  a  commercial  standpoint. 

My  principal  reason  for  believing  that  it  is  necessary 
to  use  a  single  compartment  cabinet  is  that  there  are  a  large 
number  of  strong  claims  on  a  two  compartment  arrangement,  name¬ 
ly:  claims  13,  21,  23,  26,  27,  29,  30,  35,  38,  47,  95  and  105. 
These  claims  are  all  limited  to  the  two  compartments  being 
acoustically  separate,  and  it  might  oven  be  held  that  the  false 
work  suggested  by  me  would  divide  the  cabinet  into  two  compart¬ 
ments  within  the  moaning  of  those  claims.  If  so,  we  Bhould 

have  to  do  away  with  the  false  work,  hut  that  would  he  the  only 
change  necessary.  We  would  certainly  have  a  much  stronger 
case  in  fighting  these  claims  if  we  had  removahle  pieces  of 
open  work  rather  than  a  solid  hoard  partition  as  in  the  pres¬ 
ent  structure.  These  appear  to  he  strong  claims,  and  I  think 
they  should  he  avoided  as  much  as  possible. 

There  is  another  set  of  claims  in  which  there  are  two 
compartments  which  are  acoustically  separate,  one  compartment 
for  the  reproducer  and  the  other  for  the  large  part  of  the 
horn.  These  claims  oould  easily  he  avoided  hy  the  use  of  'ty 
communicating  compartments.  1  refer  to  claims  16,  35,  39,  40, 
41,  4-. ,  56  ,  58  ,  59  ,  60  ,  65  ,  67  ,  72  ,  74  ,  82  ,  94,  and  107. 

There  are  several  claims  which  can  ho  avoided  hy  not 
fitting  the  mouth  of  the  horn  to  the  opening  in  the  oahinet, 
namely:  claims  25  ,  29  ,  33  and  45.  It  scorns  to  me  tha't  in  view 
of  these  claims  'the  horn  should  not  he  so  fitted,  and  while  it 
is  true  .that  one  of  the  doll  patents  showB  a  cylindrical  tube 
fitted  to  afe. opening  in  the  head,  this  is  not  a  tapered  member 
such  as  an  ordinary  amplifier,  and  furthermore  the  claims  are 
drawn  to  comh.inations  of  which  this  is  merely  one  element,  and' 
this  is  generally  true  of  the  claims  of  this  patent,  and  is  one 
of  the  things  which  makes  it  bo  dangerous. 

.Thfe  following  claims  sould  seem  to  make  it  imperative 
to  dispense  with  the  swinging  sound  oonveyer,  and  use  a  one- 
piece  horn  extending  clear  to  the  sound  box  of  the  reproducer, 
narely:  26,  28,  43,  48,  49,  50,  51,  52,  53,  54,  55  and  107. 

'■/  5. 

The  following  olaims  mako  it  neoesDary  to  Bake  the 
horn  in  one  piece  as  distinguished  fron  a  sectional  horn, 
namely!  37,  93,  94  and  95. 

The  following  olaims  are  avoided  hy  using  a  station¬ 
ary  reproducer,  namely:  75,  76,  77,  78,  79,  80,  81,  83  and  84. 

The  following  claims  are  avoided  hy  having  the  motor 
and  horn  in  the  same  compartment,  as  distinguished  from  having 
the  motor  boxed  in,  namely:  67,  90,  91,  96,  97,  98  and  99. 
While  it  is  old  to  "box  in  a  motor,  yet  these  are  combination 
olaims  not  dependent  for  their  novelty  on  the  boxing  in  of  the 
motor,  and  should  therefore  be  avoided  by  the  simple  expedient 
of  leaving  the  motor  open  as  in  the  Criswell  patent. 

The  following  olaims  might  bo  sued  upon  but  1  am 
Satisfied  that  they  are  too  broad  and  would  be  held  invalid  in 
view  of  our  public  use  of  slot  maohineB,  namely:  34,  36,  44, 
45,  68,  69,  70,  71,  73,  85,  89  ani  92. 

The  following  claims  are  limited  to  the  use  of  a 
deflector  or  sound  modifier  applied  to  the  baok  end  of  the 
horn,  which  feature  we  do  not  propose  to  use,  namely:  1,  2,  3, 
4,  5,  6,  7,  9,  10,  11,  12,  14,  IB,  17,  18,  19,  20,  22,  46,  57, 
«!',  62,  63,  64,  66,  100,  101,  102,  103  and  104, 

Claim  8  Ib  apeoifio  to  the  yoke  and  horn  for  uniting 
the  pivotal  tone  arm  to  the  stationary  horn,  arxl  we  do  not  in¬ 
fringe  it. 

OlaimB  31,  32  and  42  are  limited  to  a  cabinet  open 
at  the  bottom.  This  feature  we  do  not  use. 


The  following  olaima  I  do  not  see  any  Hay  to  avoid, 
and  think  wo  shall  have  to  stand  suit  on  these  and  defend  on 
tho  ground  of  non-invention,  namely:  24,  86,  87,  88  and  106. 
These  claims  read  as  follows: 

"24.  A  talking  machine  comprising  a  casing  provided 
with  an  opening  and  having  a  hinged  cover,  a  partiion 
adjacent  tho  cover,  talking  machine  operating  moanB  sup¬ 
ported  beneath  the  partition,  a  talking  machine  including 
a  sound  reproducer,  said  reproducer  being  above  tho  par¬ 
tition  and  accessible  by  moving  the  cover,  and  a  horn  ex¬ 
tending  from  the  reproducer  to  the  opening  in  tho  cabinet. 

86.  In  a  talking  machine,  tho  combination  with  sound 
reproducing  means,  of  an  amplifier  cooperatively  connected 
therewith,  aid  an  inclosure  below  the  talking  machine  with¬ 
in  which  is  positioned  the  major  portion  of  the  amplifier. 

87.  In  a  talking  machine,  the  combination  with  sound 
reproducing  means,  of  a  cooperating  amplifier  connected 
therewith,  and  on  inclosure  supporting  tho  major  portion 
of  the  amplifier  below  the  talking  machine. 

08.  In  a  talking  machine,  the  combination  with  sound 
reproducing  means,  of  a  cooperating  amplifier  connected 
therewith,  and  an  inclosuro  supporting  the  major  portion 
of  the  amplifier  in  a  fixed  position  bolow  the  talking 
machine . 

106.  In  a  talking  machine,  a  casing  having  an  opening, 
sound  amplifying  means  ctationarily  mounted  within  said 
casing  and  inclosed  thereby,  the  largo  end  of  said  amplify¬ 
ing  moons  terminating  at  about  said  opening  in  the  caBing, 
a  sound  conveying  tube  within  said  casing  and  having  one 
end  connected  with  the  small  end  of  said  amplifying  means, 
sound  reproducing  means  at  the  o ther  end  of  said  sound  con¬ 
veying  tube,  and  a  record  support  within  said  casing. 

If  you  see  any  nay  of  avoiding  them  by  a  structure 
in  which  the  horn  is  carried  below  the  phonograph,  as  is  neo- 
essary  in  order  to  mate  a  desirable  instrument,  I  should  be 
glad  to  have  your  views,  but  as  I  have  previously  stated,  I 

do  not  consider  that  the  uoe  of  a  horn  of  this  character  in  the 
Criswell  patent  ,  would  amount  to  invont ion. 



d-o-y^ a 

July  2,  1909. 

Note  attached  copy  of  letter  to  Walter  H.  Miller  in 
reference  to  the  new  Copyright  Law.  I  imagine  that  nothing  of 
this  sort  will  come  up  before  1  return  in  September,  but  if  it 
does,  ascertain  from  Washington  whether  the  composition  was  copy¬ 
righted  after  July  l,  1909,  and  whether  the  composer  is  an  American 
citizen  or  a  citizen  of  a  country  granting  corresponding  rigits. 

If  a  copyright  is  one  requiring  royalties,  refer  the  matter  to 
•Mr.  Goodwin  and  have  Mm  negotiate  with  the  publisher  to  get  the 
right  to  use  the  piece,  preferably  for  an  upset  price,  the  reason¬ 
ableness  of  which  Mr.  Wilson  can  determine,  and  if  not,  try  if 
possible  to  have  the  royalties  only  apply  to  records  sold,  and  not 
to  all  records  manufactured,  and  also,  if  possible,  only  to  rdcords 
sold  in  the  United  States,  and  finally  providing  that  10$  of  the 
accrued  royalties  should  be  retained  for  one  year  and  an  adjustment 
then  made,  in  view  of  any  returned  records.  Mr.  Goodwin  is  fully 
acquainted  with  this  situation  and  will  be  able  to  negotiate  the 
matter,  but  I  would  prefer  to  have  notMng  done  until  I  return. 


E.  L.  D, 


Mr.  Walter  H.  Hiller, 

Manager  Recording  Department, 
ITew  Yorlc, 

Dear  Sir: 

July  8,  1909. 

The  now  Copyright  law  went  into  effect  on  July  i,  1909, 
and  in  the  future  you  want  to  be  guided  by  the  following  instruc¬ 

Any  piece  of  music  marked  "Copyrighted  1908"  or  earlier  can 
De  freely  uoed.  Any  piece  of  music  marked  "Copyrighted  1909"  can 
Do  freely  used,  provided  you  are  ahsolutoly  sure  that  it  was  pub¬ 
lished  before  July  1,  1909.  If  you  have  may  doUbt  as  to  whether 
the  copyright  was  obtained  before  or  after  JUly  i,  1909,  bring  the 
matter  first  to  the  legal  Department,  in  ordor  that  the  date  of 
the  copyright  can  be  ascertained.  If  the  music  is  a  foreign  pub¬ 
lication  and  has  no  copyright  notice  on  it,  do  not  use  it  until 
it  has  been  first  submitted  to  the  legal  Department,  because  there 
may  be  an  American  edition.  If  the  pieoe  of  music  is  of  American 
production  and  contains  no  copyright  notice,  do  not  use  it  until 
the  -matter  has  been  brought  to  the  attention  of  the  legal  Depart¬ 
ment,  because  you  may  have  a  spurious  copy.  if  you  have  any 
reason  to  believe  that  the  composer  of  a  copyrighted  piece  is  a 
foreigner,  bring  the  matter  to  the  attention  of  the  legal  Depart¬ 
ment,  in  order  that  the  nationality  of  the  co^osor  can  bo 



w.  H.  Miller . 

investigated,  -because  it  is  possible  he  may  not  be  entitled  to 
mechanical  rights.  In  other  wordB,  hereafter,  unless  you  are 
absolutely  convinced  that  a  piece  of  music  has  been  copyrighted 
before  July  1,  1909,  you  want  to  use  extreme  care,  because  the 
penalties  for  infringement  under  the  new  law  are  very  severe. 

VSy  general  idea  on  the  subject  of  what  you  should  do  is  not  to 
hamper  or  hinder  you,  but  I  think  you  should  bear  in  mind  that  the 
payment  of  royalties  will  operate  as  a  heavy  additional  expense 
which  we  may  not  bo  able  to  get  back.  Make  as  much  use  as  you 
can  of  uncopyrighted  pieces  or  old  pieces,  and  if  any  composers 
come  to  you  with  songs,  give  them  a  trial,  as  it  might  pay  ub  to 
W  a  good  thing  outright  and  copyright  it  ourselves.  If,  how¬ 
ever,  you  $ind  it  necessary  to  use  any  copyrighted  piecs  which  may 
have  been  copyrighted  after  July  1,  1909,  consult  with  the  legal 
Department,,  in  order  that  proper  notice  to  the  copyright  proprietor 
may  be  served  on  him  and  a  special  contract  made  if  possible.  I 
imagine  that  no  particular  piece  of  music  copyrighted  after 
July  1,  1909,  will  become  so  popular  that  you  will  have  to  use  it 
before  I  return  in  September,  but  if  there  is  anything  that  you 

have  to  use,  you  want  to  be 

very  careful  not  to  make  any  mistake. 

Yours  very  truly. 



HEED  TOLY  12,  1909. 

Present:  Messrs.  Dolbeer,  Goodwin,  John  Pelzer,  Burnham, 

Hudson  and  Durand. 

Mr.  Dolbeer  stated  that  this  meeting  was  oalled  for  the  purpose 
of  conferring  upon  the  matter  of  haying  the  salesmen  of  the  National 
Phonograph  Company  represent  and  introduce  as  far  as  possible  the 
goods;  of  i  the  various  Edison  Companies  manufactured  here;  that  we 
have  eighteen  salesmen  at  the  present  time  and  propose  increasing 
the  number  to  thirty;  that  the  estimated  oost  of ; the  thirty  men  per 
year  will  be  approximately  #90,000  to  $96,000;  and  that  while  these 
men  will  travel  prinoiply  for  the  National  Company,  who  will  of  ooursi 
Btand  the  major  portion  of  the  expense,  a  certain  proportion  of  the 
expense  will  be  apportioned  to  the  other  companies  according  to 
the  amount  of  work  done  or  time  expended  in  their  interest  at  the 
end  of  eaoh  six  months  or  year.  He  stated  that  Mr.  Goodwin  had  been 
appointed  Manager  of  Salesmen,  exoept  those  who  are  now  employed 
in  a  special  oapaoity  by  the  Battery  Department,  Kinetograph  Depart¬ 
ment  or  Business  Phonograph  Department,  no  salesmen  being  employed 
in  the  Bates  Department  at  present,  and  that  any  matters  to  be  taken 
up  with  the  salesmen  should  be  taken  up  through  Mr.  Goodwin.  He  slad 
that  this  idea  he  thought  was  suggested  by  Mr.  Dyer  and  that  Mr.  Ed  in 
had  urged  its  being  adopted.  Mr.  Goodwin  then  said  that  the  Sales 
Managers  should  outline  what  is  to  be  done  by  the  salesmen,  What 
you  want  them  to  say,  what  you  want  them  to  show,  what  class  of  people 
they  are  to  oali  upon,  the  training  they  must  be  given  before  they 
start  out,  etc. 

Hr.  Hudson  brought  up  the  Question  of  expense,  stating  that 
ho  proposed  putting  on  a  oouple  of  additional  salesmen  and  did  not 
want  the  expense  to  he  so  great  that  he  could  not  put.  these  men  on  ‘I-trr  <*'*" 

i  'rt-iA.If  o-w/5m>  -^/  ZJL~i>  , f,  i 

Hr.  Dolbeer  xsts  stated  that  this  oould  only  he  determined  at'tho 
end  of  six  months  or  a  year  and  would  depend  on  the  servioes  rendered, 
the  national  Phonograph  Company  of  course  standing  the  major  portion. 

Mr.  Burnha  brought  up  the  question  of  expense,  having  only  a 
small  line  to  handle,  and  thought this  might  antagonize  the  dealers 
hndling  numbering  machines,  but  it  was  explained  that  it  was  not  the 
purpose  to  take  the  orders  and  fill  them  direct  from  the  factory, 
but  to  have  the  dealers  and  Jobbers  get  the  benefit  of  the  work  done 
by  the  salesmen  the  same  as  in  the  case  of  the  national  Company.  *  It 
was  agreed  hy  all  that  this  would  be  a  good  plan  and  bound  to  be  of 

Mr.  Durand  suggested  that  in  issuing  instructions  to  the 
salesmen  it  might  be  well  to  have  a  form  of  receipt  at  the  bottom 
of  the  sheet  whioh  the  salesman  would  sign  and  return,  thus  making 
sure  that  they  would  receive  notice  of  any  changes:;  eto. 

Correspondence  with  the  salesmen,  reports  from  them,  eto.,  will 
be  carried  on  between  the  sales  Manager  and  the  salesmen  with  extra 
copies  of  reports  and  correspondence  to  be  filed  with  Mr.  Qoodwin 
for  referenoe. 

Mr.  Durand  asked  whether  his  salesmen  sbuld  foward  anyoomplaints 
or  other  information  they  might  aquire  regarding  the  amusement 
phonographs,  and  it  was  thought  this  would  be  of  benefit. 

Mr.  Dolbeer  said  he  thought  it  would  be  of  considerable  benefit 
for  all  the  Sales  Managers  to  meet  and  disouss  ways  and  means  for 
their  mutual  benefit— if  not  at  regular  intervals,  then  to  meet  on 
call,  say  every  two  weeks,  a  month  or  six  weeks. 

Mr.  Dolbeer  was  eleoted  Chairman  of  the  organization,  and  for 


the  present  at  least  the  meetings  will  be  subjeot  to  call. 

In  disoussing  points  of  mutual  benefit  and  help  Hr.  Durand  asked 
whether  it  was  the  idea  that  a  new  phonograph,  for  inBtanoe,  just 
prior  to  being  adopted  in  its  f inishd'state  be  brought  before  them 
for  their  oritioism,  and  it  waB  agreed  that  this  might  be  done. 

Hr.  Goodwin  pointed  out  that  forms  to  be  gotten  out  by  the  SaleB 
Managers  for  the  use  of  salesmen  should  be  of  the  same  size  as  the 
salesmen  aro  now  using  so  as  to  fit  the  reoeptaole. 

It  was  arranged  that  a  meeting  Should  be  held  in  the  Committee 
Boom  on  the  third  floor  to-morrow  morning  for  the  purpose  of  explan irg 
the  way  of  handling  the  Kinetoscope  and  films,  eto. 

There  being  no  further  business  the  meeting  adjourned. 

t.  W.  Talker. 

Sept.  IX,  1909. 

I  have  read  over  Mr.  Graf's  letter  about  Vi-  <j 
Grand  Opera  talent-  with  a  great  deal  of  interest  and 
return  it  herewith. 

I  must  confess  that  there  is  no  feature  of 
the  business  upon  which  I  have  a  less  definite 
opinion  than  that  of  Grand  opera  Records.  If 
we  were  practically  alone  in  the  field  the 
problem  would  be  easy  of  solution.  The 
competition  of  the  Victor  Company,  however,  makes 
it  exceedingly  difficult.  They  have  a  great 
advantage  in  their  recording  possibilities, 
their  louder  record  and  their  exclusive  artists, 
most  of  whom  at  present  occupy  the  highest  places 
in  the  Grand  opera  world.  Therefore,  no  matter  how 
well  we  may  plan,  we  must  suffer  by  comparison. 

It  seems  to  me  that  the -action  of  the  Victor 
Company  in  selling  Slezak  Records  at  $1.00  each 
has  practically  laid  down  a  policy  that  we  must 
follow.  It  seems  impossible  to  think  of  our 
getting  a  higher  price  than  $1.00  each  for  Slezak 
Records  and  since  Slezak  is  the  best  of  our 
possible  artists  at  the  present  time,  I  do  not  sec 
how  we  can  expect  to  get  a  higher  price  for  other 
singers'  Records  than  those  made  by  Slezak. 
Consequently,  it  looks  as  if  we  were-  practically 
compelled  to  make  a  flat  price  of  $1.00  each-  on 
Grand  opera  Records, regardless  of  their  cost. 

After  all,  the  question  is  one  of  not'  how  much 
money  we  can  make  from  this  feature  of  the  business, 
but  how  little  we  shall  lose.  Even  at’  the  price 
paid  Slezak  for  his  work,  we  ought  to  get  back  the 
entire  cost  in  from  one  to  two  years.  In  other 
words,  the  profits  from  his  Records  above  the  cost 
of  manufacturing 'and  selling  ought  to  be  enough  in  • 
from  one  to  two  years  to  offset: the  sums  paid  Slezak. 
The  same  ought  to  be  true  of  any  other  singer,  even 
though  we  paid  a  considerably  higher  price. 

I  do  not  think  that  the  Victor  Company  is  going 
to  be  able  to  indefinitely- maintain  its  present 
prices  of  from  $2.00  to  $7.00  per  Record.  Just  aB 
soon  as  we  or  any  other  company  can  produce  Records 
nearly  equal  to  theirs  in  quality  and  can  sell  tham 
at  a  more  popular  price,  their  exclusive  contracts 
are  going  to  be  a  boomerang.  They  will  be 
compelled  to  sell  Records  at  a  lower  price,  even 
though  they  lose  money  on  every  Record.  It  is  possible 
that  if  we  named  a  flat  price  of  $1.00  for  all 
of  our  Grand  Opera  Records,  it  would  soon  begin  to 

Mr.  Dyer  -2-  Sept.  11,  1909. 

react  against  the  Victor  Company  and  they  would 
sooner  or  later  have  cause  to  regret  their 
efforts  to  discredit  Slezak-  and  our  own  efforts  to 
enter  the  Grand  Opera  field. 

The  only  complication  in  a  popular  price 
like  this  is  the  effect  upon  singers.  We  might 
have  some  difficulty  in  getting  artists  to  sing 
for  us  if  the  Victor  Company  sold  their  Records 
at  $3.00  and  we  at  $1.00.  if  the  present  Victor 
prices  are  also  obtained  by  the  Gramophone  Company 
in  Great  Britain  and  Europe, and  both  companies  are 
likely  to  be  able  to  continue  to  make  exclusive 
contracts  with  the  best  artists  and  to  maintain 
the  existing  prices,  then  it  would  be  a  mistake  on 
our  part  to  have  a  flat  price  of  $1.00  each. 

Then,  again,  so  long  as  we  have  only  a  cylinder 
record,  must  we  not  admit  inferiority  and  if  so,  a 
$1,00  price  would  be  consistent  with  our  position. 

In  any  event,  I  hardly  see  how  we-  can  have  a  graduated 
scale  ranging  from  $1.00  to  $3.00.  The  Victor 
price  of  Slezak  Records  seems  to  settle  the  matter 

As  for  the  lingers  named  in  Mr.  Graf’s  letter, 

Jorn,  Kraus,  Knote  and-  even  de  Reszke  cannot  be 
put  in  the  first  class.  Torn  has  made  Records 
for  us  in  Germany  and  we  are  selling  them  here- 
at  35#  each.  The  same  is  true  of  Ernest  Kraus. 

Knote  spade  some  Grand  Opera  Records  for  us  but 
they  made  no  special  hit  and  certainly  we  could  not 
get  more  for  his  Records  than  asked  for  Slezak  Records. 
Bonci  is  probably  the  best  name  suggested  and 
probably  equal  or  superior  to  Slezak  from  a 
commercial  standpoint.  I  think  he  is  an  Italian 
tenor  and  would  afford  a  better  cosirparl  son  with 
Caruso.  Whether  it  would  pay  to  fight  the  E'onotypia- 
contract  for  him  would  depend  upon  the  probable  cost. 

I  doubt  if  we  could  afford  to  spend  a  total  of  more 
than  from  $20,000  to  $25,000  to  get  his  services. 

I  would  not  think  of  putting  singers  like 
Muratore,  Berti  and  Resky  in  the  Grand  opera  list  at 
all^I  do  not  know  Mile.  Verlet,  but  the  cost  of 
her. seems  too  cheap  to  be  good.  The  Records  of 
de  Reszke  would  be  useful  as  part  of  a  catalogue, 
but  I-  doubt  if  he  would  have  great  advertising 
value.  I  am  under  the  impression  that  he  is  here 
regarded  as  a  "has  been"  and  no  matter  how  good  his 
Records  might  actually  be,  he  would  be  discredited  by 
possible  buyers. 

The  greatest  demand  in  this  country  seems  to  be 

Mr.  Dyer  -3- 

Sept.  XI,  1909. 

for  Grand  Opera  Records  in  Italian.  I  do  not  know 
whether  this  is  because  Italian  opera  is  more  popular, 
or  because  caruso's  Records  have  been  so  widely  sold 
as  to  make  it  appear  as  if  they  -represented  the 
sentiment  of  that  part  of  the  public  wanting  high-class 
music.  Our  own  experience  has  been  that  Records  in 
Gentian,  especially  those  f rom  V/agner  *  s  operas,  have 
not  sold  as  well  as  those  sung  in  Italian. 

not  311  eaBy  matter  to  attempt  to  influence  ' 
Metropolitan  papers  for  the  puppose  of  exploiting 
Slezak  before  the  public.  Slezak  will  succeed  or  fail 
according  to  his  merits.  If  he  is  not  a  high-class 
singer,  no  amount  of  effort  on  anyone* s  part  could 
gain  for  him  favorable  consideration  at  the  hands  of 
4? press,  if  he  succeeds,  on  his  merits,  it 
yiH  not  he  necessary  for  us  to  do  anything.  There 
is  nothing,  however,  to  prevent  us  from  getting  out 
attractive  printed  matter  and  in  that  way  keeping  him 
before  the  public.  We  might  also  use  newspaper  space 
to  exploit  him  and  his  Records  just  as  Mr.  Lawson  does 
to  exploit  his  stock  operations,  we  would  have  to  use 
display  space,  but  we  could  address  .the  public  in  the 
space  in  the  same  words  as  if  the  matter  appeared  in 
reading  columns.'  This  will  be  expensive  publicity 
and  it  might  pay. 

diMr.  Grafs  letter  points  out,  however,  that  we 
cannot  expect  to  get  in  a  few  months  what  it  has 
taken  eight  years  for  the  Gramophone  and  Victor 
Companies  to  secure. 

L.  C.  McChesney, 


•  iSjz-n'^L 

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HOTEL  MAjESTIC  a  1  .  .  . 

"i",““,l“f,"  Xwax->l^cji..  •>  Mv**  A*  ^ao-c.  tjmv-  « 

C.  JxJKA-t.  i-44-M. 

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'('-a-o  <L-a-^»-«i^>i-i<-cA_-e.  jf^v  ?L-  ,  lA~4-t^-i*-&i_f. 

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■  ^tx,  ^  uc  (f-^-r-  *SB- 

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7{apies&  Co.,  j££t 

(2,5 - k - - WHOLESALE  AND  RETAIL - » - r 3  ^  ) 

(Sdlson  w nog  rap  As  and  ^Records, 

*dlncl  all  Supplies. 

>-/Vo.  603  (bast  >. ALaitt  Street. 

Mr.  Walter' Miller! 

Nov/  York  C  it; 
Dear.  Sir 

Richmond,  Va„. 

d?CK  L  Or-:/L 

Enclosed  please  find  some  clippings  from  the  latest  Vic¬ 
tor  publication; .  They  say  they  have  secured  the  services  of  the  cele¬ 
brated  tenor  Slezak,  also  Ricardo  Martin.  We  thought  you  were  going 
to  spring  these  fellows  with  the  new  hornless  machine,  but  you  cannot 
get  ahead  of  these  babies  for  talent.  . 

. - — There-is  another -matter,  we  '.would  like  to .  call*  to  your  at¬ 
tention,  wish  you  would  take’  it  up 'when  selecting  records,  when  a  pop¬ 
ular  song  comes  out  like  "My  Wife* s  Gone  .To  The  Country  Hooray."  that' 
you  could  put  it  out  before  the  song  is  dead,  this  record  does  not  go 
on  sale  until  the  25t,h.  of  thin  month.  Why  donH  you  have  a  special 
list  to  put  out  on  these  records,  send  them  out  so  tho  public  can  got 
them  at  once.  According  to  your  system  now  you  cannot  get  a  popular 
song  out  within  GO  days,  this  is  not  justice  to  a  dealer  that  loads  up 
on  them.  If  we  could  countermand  our  order  for  one-half  of  our  pur¬ 
chase  we  would  like  to  do  no.-  Take  this  up  with  every ...  dealer  'and  they 
will  appreciat.-.,-  your  efforts...  ... 

Diet.  C.B.H. 

Yours  very  truly,  -r 

C.  B.:  Haynes  &  Co.  , 


.  Sept.  . <25,1909. 

Messrs.  C.B. 

Gentlemen :- 

Haynes  &  Company, 

6C3  East  Main  Street, 
Richmond,  Va. 

>.  Yours  of  the  20th  inst.  to  Ur.  Walter  H. 
Miller  has  been  brought  to  my' attention.  We  have  made 
an  exclusive  contract  with  the  celebrated  tenor,  Leo 
Slezak,"  who  in  the  .future  will  sing  only  for  ub.  The 
records  referred  to  v/ere  made  by  the  Graphophone  Company 
in  Eondon  some  time  ago,  and  no  doubt  this  particular 
announcement  wuo  made  in  view  of  the  fact  that  we  have 
just  made  a  contract  with  Slezak.  So  far  as  Ricardo  Mar¬ 
tin  is  concerned,  we  have  a  number  of  hio  reoords,  which 
will  shortly  be  issued  with  the  now  concealed  hoin  ma¬ 
chines,  for  which  we  have  selected  the  name  "Amberola". 

What  you  say  in  regard  to  getting  out  popu- 
_ar  songs  in  advanoc  of  our  regular  time  is  a  matter 
which  1  have  often  recognized  should  be  done,  if  possible, 
and  I  expect  very  shortly  to  have  a  scheme  worked  out  by 
which  records  of  this  kind  can  be  issued  v  a*y  promptly. 


if  L'easrs.  C.B.  Haynes  &  Co. 

You  will  receive  an  Official  notification  explaining 
the  detailB  of  the  arrangement  in'a'few  doyB. 

Yours  very  truly, 



(?**.¥*  9) 

Mossra.  Dyer,  Wilson,  Aikon  and  Wurth: 

Some  time  ago  Mr.  Edison  present¬ 
ed  Mr.  Walter  Kruesi  with  a  phonograph,  and  at  the  same  time 
promised  to  make  some  speoiul  moulded  records  of  material  ho  would 
send  us,  which  gives  instructions  to  the  general  public  on  hygienic 

I  am  Bending  Mr.  Wurth  one  of  the  two  masters  we  have  made 
for  him  and  seme  is  to  bo  wade  into  a  regular  mould  and  I  will 
advise  later  as  to  how  many  moulded  recordB  are  to  be  made  from 
same.  Mr.  Wurth  will  note  that  the  master  iB  recorded  on  a  98  2/3 
threads  blank,  and  it  will  not  bo  necessary  to  make  a  mother  mould. 

W.  H.  Miller. 


Wxzmpt  JFirjmtim* 

WILLIAM  T.  FREY,  - '  -  . 

tty*  Qlitg  xx£ 




NOV:;  11903  .) 

FRANK  L.  DYER.  ) 

—MEETINGS-: — - -■ 



o.  H'  '7- 


we  take  in  appeal- 

Hon.  Thomas  A.  Edison 
hoar  Sir;- 

Please  excuse  the  liberty],  if 
ing  to  you  for  the  donation  of  a  phonograph  for  the  Firemens 1  home 
in  this  city.  Our  building  is  now  completed  and  many  of  our  members 
worked  for  you  in  the  factory  on- Ward  street.  As  some  of  our 
members  are  crippled  from  injuries  received  in  doing  Fire  duty  and 
unable  to  move  about,  the  music  of  the  phonograph  would  help  to 
while  av/ay  many  hours  that  otherwise  would  hang  heavy  on  them. 

We  have  a  widows  and  orphans  fund  but  cannot  use  any  of  it  for  the 
purchase  of  a  phonograph,  but  would  purchase  the  records  at  our 
°wn  expense.  ~  ' 

Thanking  you  in  advance,  we  remain, 

Yours  very  respectfully, 


Firemens'  Hall,  : 

39  &  41  Centre  at., 

Newark,  N.  J, 

The  Trade,  and  such  others  as  have  followed  the  development  of 
the  Talking  Machine  business  since  the  advent  of  the  "Victor"  or 
"Gramophone",  will  know  that  the  following  statements  are  true  without 
further  proof. 

We  strongly  urge  those  who  are  in  doubt  upon  the  question,  or 
who  do  not  know  us  well  enough  to  take  our  word  in  the  matter,  or 
who  contemplate  handling  hornless  machines  of  other  makes,  to  secure 
the  services  of  competent  Patent  Attorneys  and  obtain  advice  on  the 
situation,  for,  by  them,  the  situation  can  be  readily  understood  and 
much  unnecessary  trouble  and  litigation  avoided  by  their  clients. 

About  the  year  1895,  the  United  States  Gramophone  Company 
started,  in  a  small  way,  to  manufacture  "Gramophones",  The  "Gramophone", 
as  everyone  well  understands,  was  radically  different  from  a  "Grapho- 
phone"  or  "Phonograph", 

The  manufacture  and  sale  of  the  "Gramophone"  was  first  con¬ 
ducted  by  the  United  States  Gramophone  Company,  followed  by  the  Berliner 
Gramophone  Company,  and  then  by  the  Victor  Talking  Machine  Company, 
which  latter  company  acquired  its  rights  from  the  former  companies. 

We  now  control  the  original  Berliner  basic  patents,  and  we 
have  the  "Gramophone"  developed  to  its  present  condition.  Through  our 
efforts  and  improvements  the  "Gramophone"  has  become  an  important  factor 
in  the  market,  in  spite  of  the  general  opinion  among  Talking  Machine 
manufacturers,  at  the  time  of  its  advent,  that  it  was  destined  to 
remain  nothing  more  than  a  toy. 

We  chose  to  invade  the  field  of  no  one,  but  have  created  an 
entirely  new  line  of  Talking  Machines  and  Records,  with  new  and 
distinctive  features. 

Our  line  of  Disk  Talking  Machines  has  not  interfered  with  the 
business  of  those  manufacturers  who  have  attended  to  their  own  business 
properly.  There  always  has  been  room  for  the  two  types  (the  disk  or 
gramophone  type  and  the  cylinder  or  phonograph  and  graphophone  type)  and 
there  always  will  be. 

After  we  had  made  a  success  of  the  machine  and  records,  the 
American  Graphophone  Company  and  the  Columbia  Phonograph  Company-General 
put  out  a  machine  and  record  of  the  "Gramophone"  type,  which  was  sub¬ 
stantially  a  copy  of  our  product  and  a  radical  departure  from  anything 
they  had  previously  marketed. 

These  latter  companies  had  no  license  at  that  time  under  our 
basic  Berliner  patent  covering  Talking  Machines  of  the  "Gramophone" 
type,  nor  did  they  ever  own  such  patent.  Their  claim,  which  appears 
from  time  to  time  in  their  advertisements,  of  having  originated  the 
"Disk”  will  be  found  upon  investigation,  to  be  based  upon  quite  a  dif¬ 
ferent  thing  from  the  Disks  they  are  advertising  in  those  same 

They  went  into  the  Gramophone  business  after  they  saw  that  we 
had  developed  a  substantial  business  therein,  totally  in  violation  of 
our  legal  rights  involved.  We  met  this  infringement  and  unfair  competi¬ 
tion  very  successfully:  then  the  American  Graphophone  Company  took  a 
license',  which  it  now  has,  under  our  basic  Berliner  "Gramophone"  patent. 

About  the  year  1902,  the  Victor  Company  had  developed  a  new  and 
important  feature  in  the  "Tone  Arm".  It  is  history  that  our  "Tone  Arm" 
marked  a  great  advance  in  the  Talking  Machine  business.  Our  organization. 
invented,  developed  and  introduced  it  -  it  was  ours. 

The  American  Graphophone  Company,  following  its  previous  policy 
commenced  manufacturing  it  after  its  commercial  value  was  demonstrated.’ 

The  difficulties  and  complications  that  arose  at  that  time, 
through  their  attitude  in  the  above  matters,  were  adjusted  to  the  best 
business  understanding  possible  under  the  circumstances.  A  certain 
exchange  of  license  agreements  under  certain  conditions  was  entered  into. 
In  the  above  matters,  the  Victor  Company  made  sacrifices,  as  a  contribu¬ 
tion  to  the  cause  of  peace  in  the  trade. 

And  now  comes  -  as  was  to  be  expected  -  the  latest  attack  upon 
another  of  our  important  creations,  -  "The  VICTROLA"  -  on  account  of  which 
we  are  obliged  to  force  the  American  Graphophone  Company  and  the  Columbia 
Phonograph  Company  -  General  to  again  enter  the  legal  arena  with  us,  and 
in  which  we  believe  to  exist  little  doubt  of  our  prompt  and  decisive 

"  T  7 


.  Our  inventors  worked  long  and  carefully  on  the  complicated 
questions  involved  in  the  "Victrola"  long  before  this  important  advance 
in  the  art  was  realized  by  others.  We  believe  we  have,  through  our  own 
patents,  thoroughly  protected  this  new  art  against  the  infringements 
which  we  felt,  from  previous  experiences,  would  come  when  its  value  was 
realized;  and,  what  is  also  important,  we  have  developed  the  skill  gen¬ 
erally  in  our  Laboratories  to  these  specific  purposes,  and,  were  it  only 
a  matter  of  superior  manufacture  we  have  placed  ourselves  years  ahead  of 
competition  in  the  art. 

Something  of  the  rare  skill,  workmanship  and  patience  that  the 
great  Violin  makers  must  master  enter  into  the  construction  of  this  new 
line  -  the  "VICTROLA". 

The  "Victrolas"  have  a  peculiar  refinement  and  quality  that 
cannot  be  imitated  save  by  the  same  methods  and  construction  due  to  years 
of  experience  and  patient  skill  which  created  them.  . "Victrolas"  and 
"Victrola"  quality  are  not  easily  within  the  grasp  of  ordinary  manufac- 
turers  on  short  notice. 

We  feel  absolutely  sure  that  our  organization  possesses  a 
superior  ability  v/hich  cannot  be  unceremoniously  appropriated,  and  the 
time  is  past  when  any  concern  or  concerns  can  infringe  our  patents  with 

The  "Victrola",  for  the  higher  class  of  instruments,  has  proven 
its  commercial  worth  and  its  great  improvement  from  an  artistic  stand¬ 
point  ;  it  reproduces  the  higher  class  of  music  in  a  far  more  satisfac¬ 
tory  manner  than  any  other  instrument  heretofore  devised;  it  has  a  form 
and  character  of  its  own,  which  we  believe  to  be  our  exclusive  property, 
by  right  of  discovery  and  invention.  The  United  States  Patent  Office 
has  granted  us  rights  which  are  more  than  likely  to  be  sustained. 

As  with  our  previous  inventions,  the  American  Graphophone 
Company,  upon  seeing  its  value,  has  put  out  an  enclosed  horn  machine 
embodying  the  inventions  of  our  "Victrola"  claims. 

So  far,  it  is  the  old  story;  but,  from  now  on,  there  is  going 
to  be  a  change.  The  Victor  Company  is  ready  and  able,  as  heretofore, 
to  protect  its  rights,  and  will  do  so  promptly  and  energetically. 

The  instrument  embodying  the  enclosed  horn  construction  lately 
put.  on  the  market  under  the  name  of  "Grafonola",  manufactured  by  the 
American  Graphophone.  Company,  is,  in  our  Judgment,  an  unquestionable 
infringement  of  our  patented  rights among  other  patents.  Reissue 
Patent  12963,  dated  May  25th,  1909;  and  we  are  taking  prompt  steps  to 
press,  most  vigorously,  our  claim  towards  prohibiting  the  manufacture  of 
this  article  by  the  American  Graphophone  Company,  or  any  other  unli¬ 
censed  concern. 

Our  suit  against  the  American  Graphophone  Company,  on  the  said 
Reissue  Patent,  was  filed  on  October  5th,  1909,  in  the  United  States 
Circuit  Court  for  the  Southern  District  of  New  York. 

"The  firm  that  appropriates  the  inventions  and  ideas  o i  another 
is  usually  behind.  They  are  usually  just  "too  late”.  Such  a  policy 
carries  no  strength  of  position". 

"We  have  never  Known  of  a  great  success  to  come  from  such 
methods,  but  we  have  seen  many  great  failures". 

"The  firm  that  originates  its  own  improvements  and  designs  has 
great  moral  support  from  the-  Trade  in  general,  a  bright  future  and  a 
strong  rear  guard  in  the  line  of  patents  to  protect  the  path  that  it  has 
hewn  out  at  its  own  expense". 

"The  people  who  think  they  are  smart  enough  to  infringe  any 
patent  that  happens  to  stand  in  their  way,  or  the  benefits  of  which  they 
happen  to  covet,  always  have  a  storm  in  their  faces;  their  road  must 
always  be  rough." 

This  circular  is  intended  as  a  warning  to  innocent  parties,  and 
^?di£at?  our  Poli°y  in  the  matter;  also  to  make  the  situation  clear 
to  the  Trade  that  all  negotiations  between  the  Victor  Company  and  the 
American  Graphophone  Company  towards  the  matter  of  licensing  the  latter 
Company  to  manufacture  the  "Victrola"  type  are  at  an  end. 

,  Yours  very  truly. 


Mr.  Bdiaon:  —  ll/i?/09. 

In  talking  over  the  toberola  situation  this  afternoon  with 
Mr.  Pettit  of  the  Victor  Company  he  said  that  he  had  talked  with 

Mr,  Johnson  about  the  matter  and  that  the  Victor  people  regarded 
the  enclosed  horn  business  as  very  important  and  enormously  valu¬ 
able  if  the  Miller  Re-issued  Patent  could  ve  sustained.  Mr. 

Pettit  had  formerly  suggested  that  we  should  pay  $50,000  for  a 
license  under  this  patent,  limited  to  cylinder  machines,  but  I 
refused  to  even  consider  this  proposition.  Mr.  Johnson  now  pro¬ 
poses  that  we  should  pay  $10,000  in  cash  for  a  license  and  $40,000 
in  case  the  jbdienieis  sustained.  '  j-- 


SL&SJzJi  - 


Hov.  23,  190'9. 

Mr.  Walter  H.  Miller, 

Manager  Recording  Department, 

Hew  York. 

Dear  Sir: 

In  connection  with  the  possible  negotiations  with  music 
publishers  to  use  copyrighted  music,  I -believe  you  can  convince  them 
that  should  we  make  use  of  copyrighted  selections  we  can  do  a  great 
deal  for  them  in  the  way  of  gratuitous  advertising. 

Whenever  we  get  out  a  new  list  of  records  we  issue  several 
forms  of  printed  matter,  which  give  the  list  a  most  thorough  and 
comprehensive  distribution.  As  30 on  as  the  list  is  decided  upon 
we  send  out  an  advance  list  like  sample  A  enclosed,  which  contains 
some  descriptive  matter  about  each  selection  and  gives  the  names 
of.  the  publishers.  This  is  sent  to  150.  of  the  leaving  music  houses 
of  the  country.  The  same  list  is  then  made  part  of  our  house 
publication,  the  Edison  Phonograph  Monthly  (see  copy  B  enclosed) 
which  is  sent  to  13,000  Dealers  in  Edison  Phonographs  looated  in 
the  United  States  and  Canada.  A  large  number  of  these  dealers 
handle  Bheet  music  and  other  muoicai  goods.  This  list  also  con¬ 
tains  the  names  of  the  publishers.  " 

When- the  records  are  shipped  from  our  factory  we  include  with 
them  liberal  quantities  of  three  other  forms.  One  of  these  (see 

2.  11/23/09.  W.  H.  Miller . 


sample  _C  enclosed)  is  hung  in  the  mo3t  prominent  places  in  every  . 
one  of  our  dealers'  stores.  This  gives  the  name  of  the  composition, 
and  some  reference  to  its  character,  hut  for  want  of  space  it  has 
not,  up  to  thte  present  time,,  referred  to  the  publisher.  We  print 
and- distribute  over  tvzenty  thousand  of  this  form. 

A  second  of  the  forms  is  a  six-page  list  printed  in  two  colors, 
in  which  the  composition  is  named  and  described.  Eight  hundred 
thousand  of  these  supplements  are  distributed  every  month. 

The  third  form  is  a  little  publication  balled  The  Phonogram, 
in  whi di  the  compositions  are  also  described  in  detail.  We  dis¬ 
tribute  nearly  six  hundred  thousand  of  these  every  month.  In  other 
words,  every  con®03ition  of  which  vie  make  records  is  included  in 
nearly  two  and  a  half  million  pieces  of  printed  matter. 

Of  course  this  publicity,  will  be  given  every  composition  that 
we  select  to  make  records  of,  whether  we  get  the  rights  to  use  the 
composition  at  the  maximum  or  some  lower  price.  The  royalties  now 
sought  by  publishers  axe  regarded  by  our  people  as,  in  a  measure, 
prohibitive,  and  they  are  likely  to  prevent  the  use  of  more  than  a 
limited  number  of  compositions,  although,  as  you  know,  in  a  number 
of  cases  publishers  have  given  us  the  right  to  their  music  at  a  much 
lower  price  than  two  cents  per  record.  It -seems  to  me,  therefore, 
that  publishers  of  popular  music  ought  to  give  more  attention  to  the 
publicity  value  of  our  use  of  their  compositions  and  be  willing  to 
meet  us  on  some  ground  that  will  be  mutually  satisfactory.  It 
seems  to  me  that  a  publisher  is  better  off  in  the  end  to  make  an 
arrangement  with  ns  by  which  we  freely  use  his  compositions  than 
to. insist  upon  the  maximum  royalty  and  compel  us  to  use  them  spar¬ 
ingly.  In  other  words,  make  it  fcappiblhlbo  use  four  compositions 
when  otherwise  we  could  only  use  one.  ’ 


V.  H.  Miller. 


If  publishers  could  be  induced  to  give  greater  consideration 
to  this  advertising  side  of  the  question  we  could  considerably 
strengthen  the  advertising  that  they  would  get  from  our  printed 
matter  by  referring  in  all  of  our  foims  to  the  publishers.  Por 
instance,  we  could,  for  a  time  at  least,  use  a  phrase  like  this: 
"Copyrighted  1909,'  Smith  &  Co.,  Hew  York.’.'Sheet  music  at  all 
dealers."  It  seems  to  me  that  this  publicity  ought  tp  be  worth 
a  considerable  sum  to  any  publisher. 

One  of  the  arguments  used  to  offset  our  claim  that  our  printed 
matter  gives  publishers  wide  advertising  is  that  it  appears  too 
late.  I  do  not  think  this  a  valid  argument.  "Even  if  it  does 
appear  from  two  to  three  months  after  a  song  has  been  presented  to 
the  public,  the  advertising  certainly  increases  the  life  of  the 
song  and  widens  the  demand,  for  it.  The  success,  of  popular  music 
does  not  lie  in  the  sales  of  the  first  two  months,  but  in  large  and 
steady  sales  over  a  long  period  of  time.  Phonograph  advertising 
will  certainly  do  this  to,  as  great  an  extent  as  any  other  medium 
you  can  select.  ’ 

I  doubt  very  much  if  the  publishers  could  think  of  any  kind  of  ' 
advertising  at  any  price  that  would  make  their  sheet  music  knovm  to 
thirteen  thousand  different  dealers  and  in  probably  seven  thousand 
different  cities  and  towns  throughout  the  country.  They  could  not 
get  such  thorough  publicity  even  by  paying  several  times  the  largest 
royalties  they  could  hope  to  receive  from  any  musical  composition. 
There  is  no  reason  why  the  publishers  and  talking  machine  companies 
should  not  look  upon  the  question  involved  in  thiB  matter  in  a 
sensible  way.  The  talking  unchine  companies  are  willing  to 
recogniee  the  rights  of  publishers  and  are  willing  to  pay  a  fair 
price  for  the  privilege  of  using  copyrighted  compositions.  On 

4 .  ll/23/09 . 

compaJ-  »•  Miller. 

the  other  hand  we  feel  that  oirr  plan  of  doing  business  gives  pub¬ 
lishers  a  publicity  that  should  have  a  proper  recognition.  It 
seems  to  me  that  publishers  and*  talking  machine  companies  need 
each  other  and  ought  to  be  working  together. 

I  make  these  suggestions  to  you  in 'order  that  you  may  be  fully 
advised  of  the  exact  situation  and  be  able  to  estpluin  to  any  pub¬ 
lisher  just  what  we  have  to  offer  him  in  the  way  of  reciprocity  for 
any  musi  c  that  we  may  use . 

Yours  very  truly, 


President . 



Mr.  Dyer  Smith:  '  '  12/6/09. 

In  reference  to  the  application  on  200-thread,  machine,  Mr.  'Edison 
told  me  to-day  that  when  he  first  experimented  with  the  invention 
he  made  the  recorder  one-half  the  diameter  of  the  100-thread  recorder 
and  that  it  was  not  until  he  had  laid  his  plan  out  on  a  scale 
one  thousand  times  enlarged  that  he  ascertained  why  it  was  that 
the  records  were  so  faint.  I  think  it  would  add  a  great  deal  to 
the  application  if  you  filed  an  affidavit  of  Mr.  Edison  detailing 
his  experiences  along  with  the  other  affidavits.  Vie  want  to  push 
this  case  through  as  soon  as  possible. 

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National  Phonograph  Company  Records 
Correspondence,  Foreign  (1909) 

This  folder  contains  correspondence  and  other  documents  relating  to  the 
marketing  and  supply  of  phonographs  and  cylinder  records  in  Europe,  Australia, 
Mexico,  and  elsewhere.  Most  of  the  items  are  letters  to  and  from  Frank  L.  Dyer, 
president  of  NPCo.  Some  of  the  letters  were  written  while  Dyer  was  in  Europe  in 
July  and  August.  Other  correspondents  include  Carl  H.  Wilson,  general  manager; 
Walter  Stevens,  manager  of  the  Foreign  Department;  and  Thomas  Graf! 
managing  director  of  NPCo,  Ltd.,  and  the  Edison  Gesellschaft.  Among  the  items 
for  1 909  are  letters  pertaining  to  business  conditions  in  Europe  and  to  orders 
received  for  phonographs  and  supplies  elsewhere  around  the  world.  Also 
included  are  letters  concerning  the  introduction  of  Amberola  records  and 
phonograph  attachments,  the  production  of  "Grand  Opera"  selections,  and  the 
production  of  recordings  by  Johann  Strauss,  Leo  Tolstoy,  William  Howard  Taft, 
William  Jennings  Bryan,  Porfirio  Diaz,  and  others. 

Approximately  10  percent  of  the  documents  have  been  selected. 


Mr.  Wilson:  l/7/09. 

I  hand  you  herewith  letter  from  Mr.  Graf,  in  vhich  he 
suggests  that  we  should  hear  50#  of  the  expenses  of  the  London 
Recording  Department.  In  determining  the  price  quoted  him,  did 
we  include  any  recording  expense?  If  so,  then  I  think  it  fair 
that  we  should  make  some  allowance,  hut  if  our  price  to  him  is 
based  only  on  labor  and  material,  and  not  recording  expense,  I 
think  the  recording  expense  should  he  assumed  by  the  London  office. 
It  might  he,  as  a  matter  of  fairness,  that,  since  the  Australian 
business  absorbs  a  part  of  the  London  records,  the  Foreign  Depart¬ 
ment  should  assume  q  part  of  the  recording  expense.  What  is 

your  opinion  on  this  point?  Suppose  you  talk  it  over  with  me 
when  you  have  considered  it. 

FLD/lWW  p.  L.  D. 





Willesden  Junction, 




December  22nd  1908 

Frank  L.Dyer,  Esq.  President, 

National  Phonograph.  Company, 
Orange  ,  N.J. 

I  JaN  41909  I 

frank  l,  pyr/;  1 

1  have  pleasure  in  enclosing  herewith  Trial  Balance 
of  this  company,  for  the  two  months  September  and  October  1908, 
and  32  Journal  Entries  numbering  from  1027  to  1058. 

You  will  be  pleased  to  note  that  on  the  trading  of 
these  two  month  there  is  a  profit  of  £4386.19.7,  and  X  have 
every  hope  to  more  than  wipe  out  the  loss  sustained  by  the 
London  Sales  Office  during  the  first  8  months  in  1908,  aB  shown 
on  the  Profit  and  Loss  Sheet,  which  I  am  sending  you  under 
separate  cover. 

I  arrive  at  the  profit  as  follows: - 
Gross  Profit  on  Sales . .£9315.  7.  2 

General  Expenses... . . . £4356.0.10 

50^  Recording  Expenses . ..572.6,  9£4928.  7.  7 

£4386.19.  7 

V/ith  regard  to  the  recording  expenses  I  would  kindly 
ask  you  to  accept  the  enclosed  R.M.Bill  Ho.E254  amounting  to 
£646.0,3,  which  covers  50^  of  the  expenses  of  the  London  Record¬ 
ing  Department  from  the  time  you  received  the  first  British 
masters  up  to  October  31st  1908.  I  think  you  will  find  that 


N.  P.  Cq„  Ltd. 

December  22nd  1908 


I  am  justified  in  making  this  charge,  because  the  price  at 
which  we  buy  the  recordB  from  you  is  higher  than  the  price  at 
which  we  manufactured  them  at  the  Brussels  factory  with  the 
recording  expenses  included.  .Since  we  do  not  manufacture  any 
more  we  are  losing  the  profit  we  made  on  the  Australian  ship¬ 
ments,  and  if  you  let  Australia  have  the  records  at  the  same 
price  at  which  you  charge  them  to  us,  they  would  have  an  undue 
advantage  over  us  if  they  did  not  stand  their  share  in  the 
recording  expenses.  On  the  other  hand,  if  you  still  charge 
to  Australia  the  10  cents  price  at  which  they  also  bought  from 
us,  then  X  think  that  a  portion  of  the  recording  expenses  should 

be  borne  by  Orange,  because  Orange  is  then  in  the  same  position 


as  we  were  towards  Australia.  I  think  you  will/this  fair 
and  trust  you  will  accept  enclosed  bill. 

Yours  very  truly . 

\  ZG — £— 


Jan.  (5,  190S. 

Thorn»s  Oral',  T?sq. ,  jranagi W  Director, 

National  Phonograph  Co.,  Ltd., 

London,  "England. 

Dear  Sir: 

I  have  your  letter  of  the  28  nd  inst.,  -:nclo!iing  hill 
No.  E-2B4.,  amounting  to  £646/o/3,  being  50}!  of  the  expenses  of  the 
London  Recording  Department  up  to  October  31,  1008,  and  which  I 
return  herewith. 

It  noons  to  no  that  your  recording  expenses  ought  to  be  aa- 
sunea  entirely  by  the  Orange  factory,  and  if  you  will- make  the  bill 
for  the  entire  amount  I  will  see  that  credit  is  given. 

In  the  pneo  for  record  is  which  we  quotedyou  v/o  have  endeavored 
as  far  an  possible  to  include  recording  expenses,  so  that  you 
oould  not  fairly  be  aslced  to  paj'’  these  item  more  than  once. 

We  have  endeavored  to  approximate  t.h0  recording  oxpenseB  about  as 
they  are  in  this  country,  but  if  we  should  .gind  after  a  few  months 
experience  that  our  estimate  la  too  low  we  can  then  udjust  the 
matter  by  proportionately  increasing  the  price  to  you,  or  by  - 
reducing  the  price  if  our  estimate  is  too  high. 

I  an  very  glad  to  have  your  favorable  report  showing  a  profit 
of  upwards  of  $20,000.00  for  the  months  of  September  and  October, 
and  I  congratulate  you  on  this  result.  I  sincerely  trust  that 
the  future  v/ill  demonstrate  the  wisdom  of  our  course  in  having  the 
business  handled  as  it  now  is. 

Yours  very  truly, 



I  return,  herewith,  report  of  "OrderB  Reoeived  By  She  Foreign 
Department  for  the  Month  of  December  19087 

In  view  of  the  conversation  had  with  you  at  the  Hew  York  Of- 
fioe  regarding  Mr,  Edison's  memorandum,  I  offer  no  farther  oomments. 

If,  however,  in  your  judgment,  you  think  it  advisable  to  go  into  this 
matter  more  fully-and  will  bo  advise  me,  I  will  be  very  glad  to  confer 
with  you  regarding  same. 


Yours  very  truly. 






I  0.53.1  you: 
for  Ueoembsr,  1S06. 

i  to  *!r*  12c  icon*  a  note  on  your  report 
fk»u  tHihk  oi'  ijis  subsection? 

yi,n/rm  v.  T-,  T1. 



Vi.  ^  i 

^•uri.  apt 

«Vv  JL*  e^»  O'  et4U*J-*,C*  &*‘**U**  **wt* 

t;  ^L^CC^C.  a  -limiter  «rr  V  • 

jt!i  ^  ct.£iQcCc^u^ 

?OSIIsl  D  E  P  A  R  T1S  E  n|_T^ 

ov-  o^CCw-«.  t(»«i  *•»  «^vcr"'v«.* 

_  \V^  [L-e^e^  «-  Xow  jtavL«*  <*" 

t^tCwv  €^X«i, &.£*.«..&.  «.  bAJ 


a  -  urfc  rf-,w»g 



Australia  . 

Bahama  Islands,  .. 
Bermuda,  .•■••••.. 

Brasil,  . 

Buenos  Aires,  .... 

Colombia . . 

Chile . . 

Costa  Rioa,  ....... 

Cuba,  . 

Dominican  Republic. 

Ecuador, . . 

Honduras,  . 

Hawaii,  . 

India,  . . 

Korea,  . 

Mexico,  . 

Miscellaneous,  .... 

Newfoundland,  . 

Nicaragua,  . . 














Philippine  Islands, 

Peru,  . . 

Porto  Rioo,  ... 
Santo  Domingo, 

San  Salvador,  , 
South  Africa,  . 
Venezuela,  ..«, 

West  Indies,  .. 

98,  348 

67  r 

-952  ^ 

120 - - 





405  i 




499  i 

106,191  ( 


Bermuda,  . 
Europe,  .. 
Chile,  ... 
Hawaii,  .. 
Mexioo  ... 
Ecuador,  . 



Carried  forward, 


Miscellaneous,  .  20  347 

Porto  Rioo,  . . . .  68  _ 

South  Afrioa,  .  .  414 

West  Indies,  . .  1Q4  _ 12_ 

165,241  33,461 


Australia,  . . . . 
Bahama  Islands, 

Brazil,  . 

Chile . 

Colombia,  . 

Ecuador,  . 

Nicaragua,  .... 

Peru,  . 

Porto  Rioo,  , 
Venezuela,  . 
West  Indies, 









•  1 




India,  .  19 

Venezuela,  .  18 

Australia,  . . . 6_ 



Australia,  . 1,500 

Mexico,  Chihuahua,  . -59 

Miscellaneous,  .  18 

Venezuela,  . .  . 



_ 12. 

.  Total  number  of  Records  ordered,  including  Moulded, 

Amberol,  Grand  Opera,  Conoert  and  Blanks,  .  346,756 




Australia,  . . . . 

Honduras,  . 



November  •  December 

Carried  forward,  .  255 

West  Indies,  . . . .,  3 

Panama,  . . .  1 



Australia,  . . .  . 

Honduras,  .  1 

Miscall.,  Panama,  . 3 

Panama,  San  Pablo,  . 3 

West  Indies,  .  2 





Australia,  .  485 

C.A. ,  Nicaragua,  .  1 

Miscellaneous,  .  2 

Porto  Bioo,  . 4 

West  Indies,  . l 





'  Australia,  .... 

Ecuador,  . 

Panama ,  ••••«•• 
West  Indies,  .. 






Australia,  . , 

Porto  Rioo,  . . 

Venezuela,  . . 

West  Indies,  ..... 


Miscellaneous,  .  __  56 

Porto  Rioo,  . . . . .  . 1  _ 

West  Indies,  . . . .  1  _ 

2  58 



Australia,  . 

Colombia . . 

Miscellaneous,  . . 

Peru,  . 





Venezuela,  . . 


Miscellaneous,  . 



Australia,  . 

Brazil,  . .  " 

t  Honduras,  . . T 

Miscellaneous,  .  . .  - 

West  Indies,  . ...!!!!!!!!!"  1 






Australia,  . . 

Brazil,  . . 

Miscellaneous ,  . . . . , 
Porto  Rico,  . . 


Australia,  . . 

Europe, . !!!!"!!”*!!!*  1 

porto  rioo, . i 

'  Z 




Australia,  .. 
Bermuda,  .... 

Peru,  . 

Porto  Rioo,  . 
West  Indies, 








Miscellaneous,  Buenos  Aires, 



Miscellaneous,  Buenos  Aires,  .  2 

"  Cuba,  .  . l_ 



Par  A,  Brazil,  . 

Honduras,  . 

San  Salvador,  . 


CLASS  "A": 

Australia,  .  16,455 

Buenos  Aires,  .  2,765 

Mexico,  . . .  _ . 

Miscellaneous,  .  3,435 

Peru,  . . . . .  5.485 







CLASS  "B": 

Mexico,  .  5,606 

Miscellaneous,  .  2,050 

Peru,  . 4.550 











Buenaventura,  Colombia, 






Ceylon,  ....... 

Australia,  .... 

Colombia,  . 

Cuba,  . 

Ecuador,  . 

India,  . 

Japan,  Kobe,  . . 
Mexico  (Hapimi) 
Porto  Rico,  ... 




Bombay,  India,  .  6 

Miscellaneous,  .  10 




"  (West)  . . . 

Asia  Minor,  .  i 

Brazil,  . "".WWW’!!!  i *  10 

British  Guiana,  . I!!!!!!!!!.,.!!!  4 

British  T?est  Indies,  . ].”*  7 

British  Honduras,  . . 

California,  . ”**“”**  j 

Canary  Islands,  . \ 

Chile,  . . I.)"  7 

Colombia,  . 4 

Costa  Hioa,  . ;..!!!.!!!!!  2 

Cuba,  . !"!!.’!l8 

Ecuador,  .  « 


Harch  19 ,  1909. 

Thomas  Oral' ,  "Esq.,  Managing  Director, 

National  Phonograph  Co.,  Ltd., 

7/illesden  Junction,  London. 

J'y  dear  itr.  Graf! 

Vfe  have  been  thinking  very  seriously,  in  oonnec- 
tion  with  the  Amber ol  "business,  of  going  after  some  of  the  Grand 
Opera  talent,  but  we  find  that  most  of  this  talent  is  tied  up  toyth 
contract  either  with  the  Victor  Company  or  with  the  Ponotipia 
Company.  I  do  not  think  it  v’ould  be  wise  for  us  to  antagonise 
the  Victor  Company  by  attempting  to  secure  their  own  artists  when 
their  contracts  expire,  because  that  would  produce  a  bad  feeling 
between  the  two  concerns,  and  v.e  are  now  perfectly  friendly  vdth  ' 

them;  besides,  if  ve  started  on  a  bidding  contest  for  talent, 
no  one  could  tell  where  the  figures  might  go  to. 

The  I'onotipia  Company  have  some  sort  of  an  arrangement  with 
the  Columbia  Company  under  which  the  former  sends  over  its  matrices 
and  allows  the  Columbia  Company  to  strike  off  copies  on  aome  sort 
of  a  division  of  profits.  It  occurs  to  me  that  we  might  possibly 
make  an  arrangement  with  the  I’onotipia  Co.  under  which  they  would 
permit  us  to  make  use  of  the  services  of  such  artists  as  they  may 
have  contracted  for  exclusively  if  we  paid  them  a  fair  compensa¬ 
tion.  I  am  not  very  familiar  with  the  methods  of  doing  business 
in  "Europe,  but  would  like  to  have  your  views  as  to  the  wiBdom  of 


Thomas  Graf. 


your  going  to  the  Ponotipia  poople  and  attempting  to  make  some 
sort  of  an  arrangement  with  them.  Before  deciding  definitely 
whether  you  should  go,  I  should  like  to  hear  from  you,  and  in 
writing  you  can  give  me  some  sort  of  a  private  code  that  I  can 
use  in  cabling  you,  in  order  that  this  matter  may  he  kept  entirely 

Yours  very  truly, 


President . 

4/19/09 . 

With  the  exception  of  'Europe,  all  foreign  sales  are  handled, 
through  the  Fo reign  Department  in  New  York.  We  hill  to  the 
Foreign  Department  in  New  York  all  goods  shipped  to  Australia, 
South  America,  Mexico,  Asia  and  other  miscellaneous  countries, 
so  that  the  total  sales  of  the  Foreign  Department  in  New  York 
should  he  the  total  of  all  foreign  countries  outside  of  Europe. 
We  hill  direct  to  London,  Berlin  and  Paris. 

JK  aV 


I.  w.  w. 

Peter  Oohreftenko,  the  young  man  mentioned,  in  the  attached  lettey 
is  now  (arid  has  been  for  the  last  two  or  three  weeks)  working  for  a 
Shoulder  Padding  Co.  in  East  34th  St.,  Mew  York.  He  is  earning  $6.00 
per  week  with  no  chance  of  advancement,  and  just  as  soon  as  the  orders 
fall  off  he  will  lose  his  position.  His  mother  and  father  in  Russia 
are  depending  on  him  for  their  support  and  he  sendB  one  half  of  his  wages 
to  them  each  week.  Mr.Borisoff  has  kindly  allowed  him  a  room  to  live  in 
and  does  not  charge  him  anything  for  it.  Although  he  is  not  now  in  desti¬ 
tute  circumstances,  his  prospects  are  not  very  bright. 

Mr.  Borisoff  who  runs  an  immigration  bureau  and  Steamship  Ticket 
Agency,  told  me  that  Peter  and  another  young  Russian  whose  first  name  is 
Pantelli  walked  into  his  store  about  two  months  age  and  asked  him  if  he 
could  do  anything  for  them.  He  gave  them  a  place  to  sleep  and  they  fin¬ 
ally  obtained  work,  Pantelli  is  working  for  a  butcher  in  Brooklyn  and  is 
earning  $10.00  per  month  and  his  board.  His  surroundings  are  very  un¬ 
pleasant  and  Mr.  Borisoff  says  he  would  like  to  see  him  get  away  from 
there  as  soon  as  possible. 

These  two  young  men  are  about  19  years  of  age  and  Mr.  Borisoff 
assures  me  that  they  are  ambitious,  honest  and  worthy  of  encouragement. 
While  theyAat  his  place  be^pre  they  obtained  work,  they  both  started  to 
learn  the  English  language  and  they  can  both  talk  fairly  well.  They  were 
both  working  in  a  foundry  in  Russia  and  owning  to  a  strike  and  political 
disturbances  they  lost  their  positions  and  then  came  to  this  country.  He 
had  not  heard  of  them  before  they  entered  his  store,  and  he  says  he  was 
struck  with  their  general  intelligent  appearance  and  decided  he  would 
do  what  he  could  for  them.  He  hopes  we  will  be  able  to  do  something 
for  them  and  appreciates  Mr.  Edison's  kindness  in  making  an  investigation. 



A.  C.  Frost, 


a  t  - 

f'Licsb  tqoq 


F3AiT<  •.’.  'Jy;- h.  J  ^aSScuAu 

^TouJLa  $ove*i>*ue*dr 


.  ^  iaz 

>■£■©  be^-^juff-  tcc^vaS’  a-  hu&faxc 

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Suffering  ^rovu  Hn-€  'Zo&hf 

br—iHtiJiou.  frit*,  hr  £jom./  ke  6-ei ■iock^i-M'  6^*hL^f^ 

H<L-^teyS  you.  a**  v^ry  kiug  kr^a9%euu^BlSieb^^  uu^fs^r, 

SuucUd  \&<d  ^rou  usill  (u/  m^  h 

you  ^ouh^Uru.  H-e-'  IfTxrftSULS  foMfuviX  o*^  , 

|  *>«*  S^r rice  kffr^s  you 

1  wauS  /m*  filfil&ug  .ffetk*  uuykizk: 

ypuH.  au%  h«Anug  ^-k*  ^2ij>  Iul  k*r\gbbrLerx  us$&  kp/zouSA 

[  ^  ^u,-eJ>  f&  T^f#-  kr-^ouA  .  cLhc^ekou  .  T^/ 

j  OAcU-ess  €u^au  u^^ulsMou  \S  ;  £/ 

<?ekf  Oohr-eAH£A^ko  ,  Cary  of  Mr.  ft  or  is  o;^, 

^  <%3  ShrZMjr  2/cf,  tfeio  yerr^. 

.  lo£$fc>^  U>as-ixu^  ge^d  hrW  records 

|  /z^;^<lUUd  hs_-Cl 0tcf  ^ret^uhcuUu-es  KotyuA  OuJ- a.  Success . 

|  A/^^^W^'eUcr|M-S  ^  SJ^rztk'ou.  3 — nnbnts>S  f  K-l^clU 

j  fo€cA^  ouh-q  i^rS  kr-^o-  hi  #~ue  kitus^Lf  ruuok 

j  K‘^  ,  ajUfU>u%U  aA^vke  Hw  u  A>aS  UiLio-eJU? 

I  A.H.S  W-€aJz. 

H-L^$4u%3  you.  kiS  (UroUaJ.  gr^eJ-iyg#  dug 


$00 cL^UnSUt*  ,  fo.  (vih/L-  Us  Oco^Ixa^, 

a^HU^re^  ho„^  ,  akriu 
ivjpri+ulug^f rW  diffieu&ki  *,«__ -ArriK^  . 

0^0  (U  T^-e  K-^jZjd-  qu^  t&ie  oceaJiou.  \6u  i^^ssiotx 

^J, — lrvu^'‘  dju^-ej\r  TtgtvTd.  . 

K[ouSS  S-in.ze^JL^, 



in  announcing 

two  records  in  English  by  Count  Leo  Tolstoy,  which  we  have  been 
fortunate  in  securing  as  a  result  of  the  mutual  admiration  and 
friendship  between  Mr.  Edison  and  Count  Tolstoy,  although  they  are 
not  personally  acquainted.  « 

m  (abty 

The  records  in  question  were  made  in  January , (Dec .  24th  in  Russia) 
at  a  time  when  Count  Tolstoy  was  recovering  from  a  serious  illness. 

This  circumstances,  together  with  his  great  age  (over  80  years) 
and  the  fact  that  the  records  are  made  in  an  acquired  tongue,  has 
prevented’  us  from  securing  the  results  which  would  be  expected  of 
a -young  and  vigorous  man  talking  in  his  natural  language.  The 
records  are  weak,  and  because  of  a  strong  foreign  accent  are  dif¬ 
ficult  to  understand;  but  they  contain  messages  to  the  American 
people  from  a  strong  and  lovable  character,  and  as  such  will  prove 
of  interest  to  the  many  millions  of  English  speaking  people 
throughout  the  world  who  admire  and  revere  Leo  Tolstoy  for  what  he 
is  and  for  what  he  lias  accomplished.  The  son  of  a  rich  man  and 
himself  a  man  of  great  wealth,  he  lias  devoted  substantially  the 
whole  of  a  long  and  useful  life  to  the  good  of  humanity.  He  has 
been  essentially  the  friend  and  adviser  of  the  poor  and  unfortun¬ 
ate.  Living  as  he  has  in  one  of  the  most  despotic  countries,  hiB 
life  has  been  a  perfect  exeng>lifi cation  of  simple  democracy.  He 
might  have  surrounded  himself  with  all  the  luxuries  and  comfortB 
that  wealth  can  give,  yet  he  has  lived  the  life  of  a  simple  peasant, 
and  has  met  with  good  sheer  the  sufferings  and  pangs  of  the  unfor¬ 
tunate.  To  the  sorrowful, tothIfflicted,  to  those  seeking  for 
light,  he  has  been  a  strong  support.  Such  a  man,  wherever  he  is 
found,  awaken  the  very  deepest  feelings  of  admiration  and  affection, 

We  have  great  pleasure 

the  publi cation  of 



and  we  consider  ourselves  peculiarly  fortunate  that  Count  Tolstoy 
should  have  consented  to  make  the  Edison  Phonograph  the  instrument 
hy  which  his  verbal  message  may  he  communicated  to  the  people  of 



(A  Parable  for  Children) 

Leo  Tolstoy. 

A  benevolent  man  wishing  to  do  as  much  good  as  he  could,  bethought 
himself  of  establishing  a  hostelry  for  pilgrims  and  of  providing  it  with 
all  that  could  be  of  use  or  give  pleasure  to  man,  he  arranged  comfortable 
rooms,  good  stoves,  lighting,  storerooms  full  of  every  kinds  of  provisions, 
vegatables  and  refreshments,  also  bedding,  and  clothes  of  every  kind  in 
such  quantities  as  to  suffice  for  a  great  many  people. 

The  benefactor  then  drew  up  some  instructions  as  to  how  to  make  use 
of  the  hostelry  and  of  that  which  it  contained.  These  instructions  he 
nailed  to  the  front  door  so  that  all  entering  might  see  them.  It  waB  state 
that  every  one  that  entered  the  hostelry  might  remain  so  long  as  was  good 
for  him,  might  eat  and  drink  to  his  heart's  content  and  make  use  of  all 
that  he  found:  olothes,  boots,  provisions.  The  only  reservations  mentioned 
were  that  guests  should  not  take  more  than  what  they  actually  needed  at 
the  time  being,  should  not  quarrel  and  should  leave  the  inn  as  orderly 
as  they  found  it. 

Having  arranged  all  this  the  benefactor  himself  retired. 

But  it  so  happened  that  the  pilgrims  entering  the  hostelry  did  not 
take  heed  of  the  instructions  and  began  to  make  use  of  what  was  put  at 
their  disposal  without  any  consideration  for  others,  appropriating  each 
one  for  himself  as  much  as  he  could  although  not  needing  it.  They  began 
to  quarrel  over  the  goods,  snatching  things  from  each  other, spoiling  them, 
and  sometime  destroying  them  out  of  selfish  malice  so  that  others  should 
not  get  them. 

Having  thus  squandered  everything  they  began  to  suffer  from  cold 
and  hunger  as  well  as  from  the  injuries  they  had  inflicted  on  each  other. 
Then  they  took  to  abusing  their  host  for  having  prepared  too  little,  for 
allowing  all  sorts  of  bad  people  to  enter,  for  not  having  placed  guards. 



Others  said  it  was  no  use  abusing  anybody  as  the  hostelry  had  of  itself 
coaie  into  existence  and  they  cursed  the  place  itself. 

In  this  same  way  we  have  in  our  world  those  who  do  not  pay  heed  to 
the  instructions  for  the  guidance  of  our  life  written  in  our  hearts  and 
in  all  the  great  teachings  of  the  wisest  of  mankind,  and  w/ho  live 
according  to  their  own  will  and  not  that  of  their  benefactor.  They  ruin 
their  own  short  lives  and  the  lives  of  others,  blaming  each  other,  God, 
the  universe,  anyone  and  anything  but  themselves. 

And  yet,  were  men  only  to  understand  that  their  welfare  depended 
solely  on  themselves,  and  were  they  to  fulfil  in  this  world  the  will  of 
the  benefactor,  -  they  would  enjoy  such  bliss,  greater  than  which  they 
cannot  oonoeive. 



"The  Kingdom  of  God  ie  Within  You", 

Leo  Tolstoy. 

The  men  who  enjoy  the  advantages  of  a  system  maintained  by  violence, 
and  who  at  the  same  time  declair  that  they  love  their  fellow  men  and 
cannot  understand  that  by  their  whole  life  they  are  injuring  them,  are 
like  a  naan  who  has  lived  all  his  life  by  robbery,  and  who,  being  caught 
■with  a  knife  uplifted  over  his  screaming  victim,  pretends  not  to  know 
that  he  was  doing  anything  unpleasant  to  the  man  he  was  about  to  murder. 
Just  as  this  robber  cannot  deny  what  is  obvious  to  all  men,  so  can  we 
no  longer  pretend  that  we  donot  know  of  the  thousands  who  are  shut  up  in 
prison;  that  we  donot  know  of  the  courts  of  law  in  which  we  ourselves 
participate,  and  which  at  our  demand,  sentence  those  who  threaten  our 
property  or  safety  to  imprisonment,  exile  and  death. 

We  know  that  if  we  are  not  interrupted  at  dinner,  theatre,  balls, 
drives,  races  and  hunts,  it  is  only  oweing  to  the  bullet  in  the  police¬ 
man's  revolver,  or  the  soldiers  gun,  which  willpierce  the  hungry  belly  of 
the  disinherited  man  who  watches  our  pleasures  round  the  corner,  licking 
his  lips  and  waiting  to  interrupt  them  as  soon  as  the  policeman  with  the 
revolver  goeB  away  or  there  are  no  ippre  soldlerB  in  the  barrackB  ready 
to  appear  at  our  first  call. 

"All  that  is  false",  some  people  still  endeavour  to  object, 

"Hobody  .forces  the  people  to  work  for  landowners  or  in  factories.  It  is 
all  settled  by  free  mutual  agreement.  Personal  property  and  capital  are 
indespen  sable  because  they  organize  labour  and  provide  work  for  the  work¬ 
ing  classes.  Labour  in  mills  and  factories  is  not  nearly  sp  dreadful  as 
you  describe.  If  abuses  do  exist,  the  Government  and  Society  take  measures 



to  atoll eh  them,  and  render  the  work  of  the  labouring-classes  ever  more 
easy  and  even  pleasant.  The  people  are  accustomed  to  physical  toil,  and 
as  yet  are  not  capable  of  anything  else.  The  poverty  of  the  people  is  the 
result  of  the  ignorance,  intemperence  and  brutality  of  the  people  them¬ 
selves,  and  we,  the  ruling  classes,  counteract  this  increasing  poverty 
by  wise  administration;  we  -  the  capitalists  -  obviate  it  by  the  diffusion 
of  useful  inventions;  we  -  the  clergy  -  by  religious  education,  and  we 
-  the  liberals  -  by  the  organisation  of  trade  unions,  and  the  diffusion 
and  promotion  of  education.  By  these  means  we  promote  the  welfare  of  the 
people  without  making  any  change  in  our  lives;  we  donot  wish  all  to  be 
poor  like  the  poor;  we  wish  all  to  be  rich  like  the  rich.  It  is  necessary 
to  restrain  evil  doers,  and  for  that  purpose,  prisons,  mines  and  gallows 
are  established.  We  ourselves  would  be  glad  to  see  them  abolished,  and 
are  working  hard  in  that  direction",  and  so  on,  and  so  on. 

Were  it  not  for  such  hypocrisy,  it  would  be  impossible  for  men  to 
live  as  they  do  now.  But  even  hypocrisy  has  its  limit,  and  I  think  at 
the  present  time  we  have  attained  that  limit. 




Thomas  Graf,  Esq. ,  imaging  Director, 

national  Phonograph  Co.,  ltd., 

V/illesdbn  Junction,  London. 

Dear  Sir: 

I  have 

yesterday  au  follows: 

“itoocuver  iCdison-iicll  off-m 
£5000.  I  consider  it  can  he  < 
have,  any  interest,  in  proposal, 
Kcrfco,  leaving  completion  of  ix 

r.v.  uajae  of  ::.’in-i  and  booh;;  for 
U-.ined  at  lover  price.  If  you 
ill  negoBinte  direct  or  •.•n-o-vih 
•njvw.t.nt  to  you."- 

I  Ivi  ?  cabled  you  to-day  ea  follows: 

"If  toy  buying  name  we  could  nr  eve;  it  use  of  nam  Edison  in 
connection  ..lUi  phonc/,,-,  .  :n.  •..•corns,  ut  o  ..  In-  dr'vc 

Offer  ore  thousand  pounds.  Keco'rae  advised  or  negotiations . " 

The  offer  of  £1000  which  I  suggest  is  purely  tentative  rad  v 
ora  go  higher  if  necessary,  tout  their  offer  of  £5000  is  too  much. 
Of  course,  should  we  conclude  this  arra.nger.ient,  you  want  to  "oe 
satisfied  toy  the  advioc  of  counsel  that  no  one -else  will  toe,  per¬ 
mitted  to  use  the  Edison  name  in  England  except  ourselves.  It 
is  not  very  clear  to  me  what  you  mean  toy  the  word  "tooolco"  in  your 
cable;  that  is  to  say,  I  do  not  knov;  whether  you  mean,  the  Minute 
and  other  record  books  of  the  company  or  their  books  of  account. 
Please  advise  me  as  to  thi3  point. 

Yours  very  truly, 


: resident . 

4/29^09i4ational  phonograph  company 

Thomas  Graf  , 

P.  3. 

I  notice  in  the  trade  pap  :rs  that  nr.  Hough,  liaa  "bought 
out  the  "Edinonia  Company.  Of  course,  if  records  could  bo  rear  hated 
under  the  nemo  "Tiidiaonia"  wo  would  not  be  gaining  very  much.  You 
should  ko op  thin  point  in  railed,  because  v?c  do  not  want  to  leave  a 
loopholo  in  cleaning  up  the  on thro  situation. 


"</S  ~~~~ 

Jiy J?DarB-  Hlrd=  Youmans:  V.  Millers  Aiken:  Dolbeer:  HcChesney: 

-  //Iretons  Philipa.  Wurth: 

Please  note  that  nothing  father  is  to  he  done 

in.  connection  v/ith  the  Tolstoy 

or  listing  them,  until  further  advised. 

records,  that  is,  towards  making 

Copies  to  Messrs.  Vyir:  Weber: 







Mr,  C,  H.  Wilson,  General  Manager, 
national  Phonograph  Co., 

Orange,  H.  J. 

Dear  Sir 

In  September  of  last  year,  the  matter  of  supply¬ 
ing  a  Record  made  hy  Mr.  Edison,  was  Brought  up  at  a  Committee  Meet¬ 
ing,  and  my  understanding  was  that  such  a  record  would  he  supplied. 
Has  anything  Been  done  in  connection  with  making  this  record? 

Yours  very  truly. 


Manager  foreign  Department 






f />,  ,  ,  / 

)  ..  . 

3  S&y  17,  1909. 

2homo  Oral,  “iSncj.,  rmriaging  Director,  '  .  •  ... 

ilati onar 'Phonograph  Go.,  .;X,td., 

Y-iilosden  Junction,  London r 

Jiy  dear  tie ,  Graf ! 

Yours  of  tjv.  6th  Inst.  has  been  received,  and 
I  am  very  sjnch  pleased'  to  hoar  that,  nacle_an  arrangement 

with  Johr-an  strauso  'as  orohebtra1  leader’  up  Nay  1,  1911.  This 
is  a  very  similar  aiu.-'ungomonT,,  apparently,  to  the  one  I  have  com¬ 
pleted  in  §hia  country  *;:it3t  Victor  Herbert  and' concerning  which 
vou  nsj:-  !iavs  aeon  references  in  the  American  trade' press.  ' 

I  -would  liJcc  'to  take,  aor.10  'advertising  advantage  of  the  ’  / 
Strauss '06  ft  tract,  because  there  ought  to  be  considerable  sale 'for 
ti’.ese  records  in  thio  country,  since  both  "Edward  Strauss, 'and 
Johann  Strauss,  the  elder,  are  very  well  3mov«x'_here. 

Before  putting  out  any  definite  announcement,  it  might  he 
well  for  you  to  arrange  with  Strauss  giving  us  the  option  of  .  ■ 

continuing  the  contract  for:  two  years  beyond  May  1st,  1911. 

Also'  send  me,  -if  possible,  a  photograph  of  Strauss;  a  short' 
biogv-phy;  a  statement  of  his  musioal  services  and  a  list  of  his. 
corn. o sit ions ,  if  any,  all  for  advertising  purposes.  1 

Yours  very  truly, 

ELI )/lW 


Thomas  Graf,  Boq.,  Managing  Director, 

national  Phonograph  Co.,  Ltd. 

Willesden  .Tunotion,  London. 

My  dear  Mr,  Graf: 

On  the  subject  of  acquiring  from  the  Receiver 

of  the  Bdls on-Bell  Co,  the  rirht  to  +i1P1 

1iG.11  to  ut.e  the  name  "TSdiaon-Bell",  I 

“  lm  *"  «»  K».  »«s  ta  ,lMoh  .to  ,t,tea 

Ihai  .  Hough  oallod  on  him  recently  and  said  that  "ho  (Hough) 

tad  uogulred  tta  righto  or  the  neor  of  the  home  •Edison-Bell  •  „„aer 

*  lioenoo  »hich  Edisonia  tad  given  th«  or  purctatad  in  son.  wy 

fr«  Edison- Bo  11  Co.  a  Xmi  time  ago!,  and  that  ho  (Hartal  is 

looking  into  the  matter  of  this  lioenoe  ana  «11  later  adviso  me. 

I  oell  year  attention  to  this  matter  because  »  do  not  .ant  to  mate 

the  mistake  of  belicylng  that  »  are  buying  something  to  „Moh 

v/e  could  not  get  a  good  title. 

I  .ill  suggest  to  Mr.  Marta  that  ho  oonfor  with  you  so  as  to 
taep  you  fully  advised  In  order  that  you  may  not  .ark  at  oro.s 
purposes,  hut  I  .ill  not  tell  him  that  you  hayo  dons  anything 
in  reference  to  the  .letter,  so  that  you  may  be  governed  accordingly. 
Yours  very  truly, 





HS  10  Fifth  Avenue. 

Hr.  S .  L.  Dyer,  President,  _t_ 

national  Phonograph  Co.,  ? 
Orange,  IT.  J. 

Dear  Sir: 

I  quote  as  follows  from  a  letter  received  from  our  ilr.  Thomas  3.  Kennedy, 
in  reference  to  grand  opera  selections: 

"'"e  would  also  suggest  that  you  put  out  as  soon  as  possible  a  good 
line  of  four-minute  grand  opera  eeleotlons  in  Italian.  The  comparatively 
poor  demand  for  the  grand  opera  two-minute  reoorde  should  not  bo  taken  as  a 
criterion  of  the  value  of  grand  opera  selections  in  general,  as  it  is  precisely 
on  account  of  the  shortness  of  the  two-minute  records  (as  well  as  tho  lack  of 
chief  celebrities)  that  our  grand  opera  selections  have  not  been  very  much  in 
demand. 11 

Manager,  Foreign  Department. 




i^omaiasju,<nu  Willesden  Junction 

DIVIDUAL  AND  MENTION  THESE  INITIALS  1 '  .  /// ,  j\(  //.’  U&Y  %  6th  ,  1909 

,.,  ,  / 

Jif  ,/ 


L,.  Dyer  Esq.,  President, 

I  vT"'  ,/  National  Phonograph  Co., 

0  R  A  N  0  E.,  N.J.,  U.s.A. 


Dear  Mr.  Dyer, 

L  .Phonograph  Co.  t , 

^ith  reference  to  our  cables  and  other  correspondence  on  the 
subject,  I  regret  to  advise  you  that  on  making  the  offer  of  £l,000 
the  Receiver,  without  waiting  for  any  augmentation  on  our  part 
has  accepted  an  offer  from  some  other  party,  i  do  not  know  the 
name  of  the  party  at  present,  but  1  presume  it  is  Mr.  Hough. 


\  Managing  Director^  &. 

Telegrams  ;  ’*  RANDOMLY." 

Edison  Works,  Willesden  Junction. 

London,  N.W.  May  27th  1909 


Frank  L.Dyer,  Esq.  President, 

National  Phonograph  Company, 

,  Orange,  N.J. 

,  t 

V  Dear  Mr. Dyer, 

I  herewith  heg  to  hand  you  Profit  and  Lobb  Sheet  of 
the  above  company  for  the  4  months  ending  December  31st  1908. 

The  loss  of  the  French  company  during  the  previous 
year  1907  was  smaller  than  before,  but  it  still  reached 
Frs.117.381.32.  Compared  with  this  figure  the  year  1908  BhowB 
an  improvement.  However  we  are  again  on  the  wrong  side  with  a 
very  good  amount,  the  loss  for  the  4  months  being  Prs. 32. 768,29 

and  with  the  loss  of  the  first  8  months  added  "  27.276.61 

.  ■  'Frs.  60.044,90 

or  approximately  £11.600. 

The  fate  of  the  French  company  was  decided  upon  by 
Mr. Edison  last  year.  However  I  have  not  been  in  a  position 
until  now  to  carry  it  out  entirely,  because  it  is  impossible  in 
France  to  find  a  suitable  party  to  continue  the  business,  and  I 
do  not  believe  that  it  is  Mr. Edison's  or  your  wish  to  entirely 
withdraw  without  some  kind  of  a  representation.  There  are 
several  nominal  factors  in  France,  but  they  are  all  business¬ 
men  in  a  smaller  way,  who  have  had  difficulties  even  in  acquir¬ 
ing  the  small  stock  of  a  few  thousand  records  which  was  necessary 
in  order  to  give  them  factors'  prices,  so  that  there  is  not  the 
slightest  possibility  to  come  to  an  arrangement  with  these 


Edison  WorKs,  Willesden  Junction. 

London.  N.W.  May  27th  1909 

Prank  L.Pyer.  Eag:  -2- 

people,  and  1  do  not  Bee  any  possibility  of  interesting  an 
outsider  sufficiently  to  take  over  the  business  and  stock,  because 
the  belief  in  the  cylinder  business  in  that  territory,  for 
reasons  which  probably  could  be  explained  but  for  which  I  am 
not  responsible,  is  not  very  great,  the  more  so  since  all  the 
other  firms  who  manufactured  cylinders  there-  Path&,  Ullmann, 
Columbia  etc.-  have  given  it  up,  or  are  about  to  give  it  up. 

I  also  could  not  yet  see  my  way  to  entirely  close  down  .because 
of  the  considerable  stock  of  records  we  have  there,  and  our 
other  obligations  in  the  way  of  leases  etc.  We  have  not  been 
able  yet  to  dispose  of  our  lease,  but  there  is  a  possibility 
that  we  may  be  able  to  do  so  in  the  very  near  future.  There 
being  no  likelihood  of  having  the  stock  transferred  to  some 
other  party,  we  would  in  closing  down  have  to  consider  the 
removal  of  a  stock  of  more  than  140,000  records  to  London,  a 
stock  on  which  we  have  paid  as  much  as  10  centimes  per  record 
for  custom  duty,  freight  and  octroi,  which,  if  the  stock  were 
transferred  to  London,  would  not  only  be  lost,  but  in  addition 
the  same  expenses  would  have  to  be  paid  over  again  on  intro¬ 
ducing  the  same  goods  into  Prance.  What  I  propose  to  do  is 
to  move  our  stock  from  the  expensive  quarter  where  we  have  it 
now  to  our  former  factory  at  Levallois-Perret,  and  continue 
the  business  there  at  nominal  expenses,  without  the  high  salary 

Edison  WorKs,  Willesden  Junction. 

London,  N.W.  27th  1909 . 

Frank  Dyer.  Esq:  -2- 

of  the  managing  director  etc.  and  with  a  small  rent  only,  the 
rent  of  the  plant  at  Levallois-Perret  being  Frs.1350-  per  annum 
only.  I  have  given  Mr. Galloway  notice  and  he  leaves  the 
company  end  of  .Tune. 

Should  this  plan  not  he  approved,  then  I  suggest  that 
you  go  into  it  with  me  during  your  visit  here. 

The  figure  given  above  as  loss  is  to  be  augmented  by 
Fr  si  2112. 05,  representing  10^  depreciation  on  furniture  and 
fixture  etc.,  which  you  will  find  in  the  first  Profit  and  Loss 
Sheet  sent  you.  Furthermore  we  have  made  a  total  reserve  of 
Frs.13.563,05  for  doubtful  debts  and  consignment  accounts. 

KEHERAL  EXPENSES.  The  enclosed  Profit  and  Loss  Sheet  for  the 
4  months  ending  December  31st  1908  shows  a  number  of  important 
decreases  in  general  expenses  under  the  different  headings, 
among  them  a  decrease  of  Frs.21.751.50  for  advertising;  several 
accounts  show  a  small  increase,  the  largest  being  Frs. 2920,45 
for  custom  duties,  which  is  explained  by  the  fact  that  during 
that  period  custom  duty  had  to  be  paid  on  all  the  records  pur¬ 
chased.  The  next  largest  increase  is  Frs.852.30  for  octroi, 
which  is  explained  that  during  the  same  period  in  1907  shipments 
were  made  from  Levallois-Perret, which  is  outside  the  octroi  line, 
while  in  1908  all  shipments  were  made  from  Paris  from  the  stock 

Edison  Works,  Willesden  Junction. 

London,  N.W.  ^  27 th  19°9 

on  which  octroi  had  been  paid.  Era. 830.40  for  salesmen, 
expenses  which  we  incurred  hy  putting  more  travellers  on  the 
road  with  a  view  of  increasing  our  business  by  this  means. 

There  is  an  item  of  Frs.4980.85  in  the  column  headed 
"Increase  in  value  of  stock",  which  is  explained  by  the  dif¬ 
ference  in  the  cost  price  of  the  records  caused  by  our  new 
price  arrangement;  the  new  cost  price  being  53$  centimes  in¬ 
cluding  freight  and  duty,  against  50  centimes  at  which  a  part 
of  the  stock  was  formerly  bought  from  the  Levallois  factory; 
to  bring  the  cost  price  to  a  uniform  figure,  we  have  to  make 
this  adjustment. 

Under  "Shrinkage"  there  is  an  item  "Broken  Wax" 
Prs.2973;  this  represents  recordB  taken  back  under  the  exchange 
system,  of  which  the  French  company  Btood  the  loss. 

I  also  enclose  Trial  Balance  for  December  1908  and 
Journal  Entries  numbering  from  795  to  833. 

Yours  jre ry  tryly, 


Thoms  Graf,  T5sq.,  Managing  Director, 

2fational  Phonograph  Cc.,  ltd. , 

V/illesden  Junction,  London. 

Dear  Sir: 

June  1,  19 OS. 

The  Pilamentophone  Co.,  Ltd.,  4  Booth  at.,  Piccadilly, 
Manchester,  have  written -us  that  they  arc  interacted  in  anev/  dia¬ 
phragm  called  the  "Pilomentino  /jtfber".  They  claim  that  t  is 
diaphragm  Jiao  Been  on  the  English  market  for  the  past  two  years 
and  has  mot  with  gratifying  success.  let  me  knov;  if  you  ever 

hoard  of  this  diaptoagii,  and  if  so,'  whether  it  amounts  to  anything. 

Y  urs  very  truly, 



HQ.  752 



Hr.  Dolbeer: 

June  9,  1909. 

Returning  herewith  letter  from  Howard  E.  Wurlitzer, 

I  beg  to  advise  you  in  reference  to  the  second  paragraph  thereof 
that  Hr.  E'ii 3 on  hao  not  made  a:sy  settlement  of  the  Moriarty 
matter  nor  is  a  settlement  contemplated.  The  situation  is  tJiat 
when  the  International  Graphophone  Co.  was  formed  in  the  early 
days  it  became  the  owner  of  a  block  of  stock  of  the  Edison  Phono¬ 
graph  Works.  Hr.  Mortar ty  eventually  got  in  control  of  tlie 
International  Graphophone  Co.  and  later  on  became  an  important 
factor  in  the  Edison  United  Phonograph  Co.,  which  was  organized 
independent  of  Mr.  Edison  to  e:qploit  the  foreign  rights  to  the 
phonograph.  The  Edison  United  Co.  then  issued  $300,000  in  bonds, 
as  I  remember  the  amount,  and  these  bonds  ware  secured  by  various 
collaterals,,  including  90/  of  the  stock  of  the  International 
Graphophone  Co.  This  Graphophone  Co.  stock  has  been  deposited 
with  the  Trustee,  and  I  undern tand  the  Edison  Phonograph  Works 
stock  was  later  deposited  with  the  Trustee  so  that  it  might  not 
get  into  the  hands  of  Moriarty.  The  situation  you'see  is  very 
complicated.  Mr.  Moriarty  is  dead,  but  I  understand  that  while 
he  was  living  many  things  were  done  that  could  bo  very  severely 
criticised.  The  Edison  United  Phonograph  Co.  has  defaulted  on 
its  bonds  and  the  whole  matter  is  pretty  effectively  tied  up. 

If  Mr.  Wurlitzer ' s  mother-in-law  is  interested  in  the  bonds 
of  the  Edison  United  Phonograph  Cn.,  they  ought  to  be  worth  some¬ 

thing,  because  the  Edison  Phonograph  Works  stock,  if  30ld,  would 
pay  a  dividend,  I  should  think,  of  between  25^  and  50^  on  the 
bonds.  If,  however,  she  is  interested  either  in  the  stock  of  the 
International  Graphophone  Co.  or  of  the  Edison  United  Phonograph 
Co.,  I  would  not  regard  the  property  as  worth  anything,  because 

3?.  IC.  Dolbeer.  n«t.on*l  pho^aph  company  6/9/09. 

it  lias  been  practically  wiped  out  "by  the  prior  claims  of  the 

I  am  not  sure  that  the  Mercantile  Trust  Co.  is  the  Trustee 
under  the  of  the  Edio  on  United  Phonograph  Co . ,  but  on 

reflection  I  am  inclined  to  think  that  the  Guarantee  Trust  Co. 
is  the  Trustee. 


i’.  I,-.  I). 

(t\  .f>. '  ?  oJ^ 


Willesden  Junction. 

;™  Th.G/kj  ^±ZCv,,, 

June  25th,  1900. 


Frank  I., 

Dyer  Iso.,  President, 
National  Phonograph  Co, 
ORANGE.,  M.J., 

Dear  Mr.  Dyer, 

I  herewith  beg  to  give  you  figures  of  the  sales  of  this 
Co.npany  during  the  month  of  May:- 

95  Gem  Phonographs 
60  Standard  " 

9  Home  » 

1  Triumph  " 

5  Commercial 

2  "B"  Underwriter  Kinetoscopes 

26,955  Amberol  records 

32,798  Standard  ” 

63  Opera  » 

4  Concert  " 

213  Regular  Blanks 

73,965  feet  of  Film 

269  Attachments  (various  types) 
1  Language  Outfit. 

£3,870.  8s.  9d.  @  J&.80  -  ^18578.10 

You  will  note  that  there  is  a  marked  improvement  in  the  total 
sales  as  compared  with  the  two  previous  years. 

Record  Business.  The  record  business  for  the  month  of  April  1909 
has  been  the  best  since  1904.  We  sold  58,000  records  in  1905, 

99,000  in  1906,  94,000  in  1907,  97,000  in  1908,  and  106,000  in  1909, 

N.  P.  Co.,  Ltd. 

June  35th,  mo  9 

Frank  L,  Dyer  EBg, 

of  which  40,000  are  Amberol  records.  This  increase  in  April  has 
been  followed  by  a  drop  in  May, 

Machines  The  machine  business  has  been  extremely  small.  X  have 
reported  to  you  about  what  I  consider  the  causes.  With  the  reduction 
of  the  Oem  price  which  I  have  announced,  and  the  new  Fireside  machine, 
I  expect  a  very  good  revival  of  the  machine  business  during  the  next 
six  months. 

Films,  This  business  has  been  very  satisfactory  during  the  month 
of  May.  Muring  the  summer  months,  as  quite  a  number  of  picture 
theatres  are  closed,  we  must  expect  a  slight  falling  off.  This  branch 
of  the  business  could  be  developed  to  a  very  great  extent  if  the 
standard  of  our  films  could  be  raised.  Our  out-put  to-day  has  been 
very  much  improved  over  what  it  was  two  years  ago,  but  compared  with 
the  high  standard  of  some  European  makes,  we  are  still  much  behind. 

I  also  enclose  statement  of  our  jobbers'  business  for  the  month 
of  May. 

Yours  very  truly. 

Managing  Director, 



Edison  Works,  Willesden  Junction. 

Frank  L.  Dyer  Esq.,  President, 

national  Phonograph  Co., 

ORANGE.,  N.,T.  ,  II.S.A, 

June  35th,  1909. 

’  lilt  61909 
’Prank  l.  dyer.,  j 

Dear  Mr.  Dyer, 

I  received  your  favour  of  13th  ult. ,  and  I  must  apologise 
for  not  having  replied  at  an  earlier  date.  The  reason  is  that  1 
have  been  waiting  to  see  the  figures  of  our  March  balance  in  order 
to  intelligently  understand  the  status. 

Your  remark  about  the  falling  off  of  the  German  sales 
during  the  first  month  of  the  year  is  quite  correct,  but  it  is  not 
peculiar  to  Germany  only.  We  had  a  very  good  December  trade  in 
this  country ,  and  an  immediate  falling  off  in  January.  In  Germany 
we  also  had  early  in  the  year  an  exchange  system  of  three  to  one, 
which  of  course  appeared  on  the  surface  as  a  boom  in  sales,  but  was 
really  a  loss.  The  small  business  during  the  first  few  months  of 
this  year  is  really  preferable  to  the  considerably  larger  sales  of 
last  year.  The  March  balance  which  1  am  sending  you  under  separate 
cover  shows  a  difference  -  minus  -  of  Mks.  11,136  in  the  present 
year  as  against  Mks,  13,320,  so  that  we  are  slightly  better  off 
than  last  year.  Furthermore  the  low  figures  of  the  first  few  months 
have  since  been  improved.  In  April  we  have  done  practically  as  much 
business  as  in  the  same  month  last  year,  and  as  you  will  note  from 
the  report  for  May,  which  I  sent  you  some  time  ago,  the  May  business 

.t  “RANDOMLY/* 


Edison  Works,  Willesden  Junction. 

Th.o/.MJ  London,  N.W.  June  25th,  1909. 

FranK  L.  Iiyer  Esq.  -2- 

this  year  has  reached  a  higher  figure  than  in  the  same  month  during 
any  of  the  previous  years.  This  also  holds  good  for  the  June 
business,  for  which  I  have  only  the  figures  up  to  the  19th.  We 
have  reached  already  Mks.  18,050  as  against  MKs.  5,030  last  year, 
and  a  minus  of  about  Mks.  5,000  occasioned  through  the  credits 
given  under  the  price  reduction  scheme  in  June  1907. 

The  record  sales  during  April  and  May  have  Kept  up  quite  well, 
and  compare  favourably  with  previous  years.  The  drop  in  the  record 
sales  is  noticeable  only  during  January,  February  and  March,  but 
this  drop  is  due  to  the  sudden  drop  in  January  which  I  explained  to 
to  you,  and  to  the  smaller  record  turn-over  during  February  and 
March  this  year  as  against  the  larger  record  turn-over  of  last  year 
occasioned  solely  through  the  exchange  system. 

In  the  machine  sales  we  also  register  a  decrease  which  is  due 
to  the  increase  in  the  price,  and  the  trade  depression,  which  would 
first  act  on  the  sale  of  our  machines.  But  we  notice  an  improvement 
already,  and  with  the  reduction  of  the  Gem  price,  the  Gem  Attachments 
and  the  new  Fireside  Machine,  I  expect  a  very  great  improvement  in 
our  machine  sales  during  the  next  six  months. 

The  figures  give  here  will  already  improve  your  impression 
of  the  German  business ,  and  I  will  only  add  that  we  have  been  able 


Edison  Works,  Willesden  Junction. 

London,  N.W.  June  25th,  1909, 

FRank  Ii.  Dyer  Esq. 

to  do  very  little  this  year  yet  in  the  Amberol  records  in  Germany, 
because  we  have  not  yet  a  German  list,  but  as  soon  as  we  have  a 
catalogue  of  German  Amberol  records  to  offer,  our  Amberol  business 
will  begin,  and  if  through  advertising  Amberol  records  are  particular¬ 
ly  pushed,  we  will  very  soon  again  be  able  to  build  up  a  profitable 
business  in  Germany. 

The  two-minute  b’.isiness  as  you  know  is  not  profitable,  because 
the  price  at  which  Berlin  buys  the  two-minute  records  is  too  high 
for  the  low  selling  price.  The  salvation  however  lies  only  in  the 
Amberol  record,  as  the  two-minute  business  will  not  be  profitable 
unless  you  can  meet  the  German  situation  in  the  way  I  have  suggested 
in  my  letter  of  March  26th,  about  which  I  have  not  heard  from  you. 

Yours  very  truly., 

General  Manager. 




10  Fifth  Avenue. 

I  hes  to  tend  you  herewith  the  following  reports,  Complete  ?oreigr.  Department, 
Australian,  Mexican  and  Argentine. 

>f  20$  ad  vale 

At  the 

possible,  i„  order  to  evade,  if  possible,  an  inoreased  duty.  The  duty  was  inereased 
“  adaitional  10&  30 %  instead  of  20$  ad  valoren,  but,  subsequently,  the 

entire  duty  was  removed,  the  Government  refunding  the  difference  between  the  20$  and 
duty,  but  our  Australian  office  was  obliged  to  stand  the  loss  of  the  20$  duty  on 

immediately  reduoed  the 

account  of  the : duty 'being  removed. 

Phis  removal  of  duty  caused  a  loss  to  the  Australian  office  of  £9000  (approxi¬ 
mately  $45,000),  which  more  than  wiped  out  their  profits  for  the  first  half  of  1908. 

Another  item  is  the  legal  Expense,  $5180.44.  This  expense  was  incurred  on 
account  of  the  Australian  office action  against  Nonok  to  sustain  our  licenses,  and  this 

otion,  as  you  know,  has  n 

authority  to  charge  this  t 

rried  to  the  Privy  Council  of  England.  I  have,  how- 

e  to  the  National  Company 

another  item  is  Eacohange.  Whan  1 

ustralien  office  was  first  estab¬ 

lished,  the  prevailing  rate  of  exchange  was  $4.86,  and  they  used  this  rate 

for  their  transactions. 

s  been  reduoed  from  time  to  time,  until,  at  uri 

san  obtain  is  $4.84.  The  item  $4075.62  ropresc 
!6  rates  and  covers  a  period  of  several  years. 

established  Naroh  15th,  1906. 

This  branch  we 



undoubtedly  due 

$1649.07.  Chin  lo 
will  note,  however, 
nearly  aa  largo  ae 
at  list  prices. 

although  the  sales  w 
ohowa  in  1907.  Shis 

largely  to  continued  business  dopression.  You 
?e  greatly  reduded,  that  the  gross  profits  were 
ms  on  account  of  cany  of  their  sales  being  cade 

A  R  G  3  IT  S  I  IT  B 

Cur  I.'r .  Kennedy  arrived  in  Buenos  Aires  Usy  25th,  1907,  and  his  first  sales  were 
reported  as  cade  July  24th,  1907. 

The  attached  statement  shows  a  loss  for  1907  of  $7985.22,  end  for  1908  of 
$19 ,557.14,  a  total  of  $27,542.56,  covering  a  period  from,  approximately,  June  1st,  1907, 
to  January  1st,  1908.  She  largest  item  shown  on  the  Argentine  statement  is  for  advertis¬ 
ing,  Ur.  Kennedy  having  expended  nearly  $10,000.00  from  July,  1907,  to  and  including  2ecem- 
ber  31st,  1908;  and  in  this  connection,  I  would  state  that  Ur.  Gilmore ,  appreciating  the 
necessity  of  creating  a  demand  for  our  goods,  authorized  Ur.  Kennedy  to  Bpend  $12,000.00 
per  year  for  advertising.  This  expense  con  hardly  be  ooneidered  as  a  lose,  as  undoubtedly 
he  will  be  greatly  benefited  from  this  expenditure  on  account  of  the  returns  which  he  will 

sportation,  as  a 
small  space 
70  a  substantial 

til  another 


F.  L.  Iyer  p  6 

cdnnection,  I  would  stats  that  Ur.  Kennedy  is  obliged  to  pay  $500.00  U.  S.  currency  for 
representation  in  eaoh  ’  ’ 

monthly  issue  of  the  magazine  "Caras  y  Caretas,"  whioh  is  considered  tne  hast  ad¬ 
vert  i  sing  me  duim  in  the  Argentine,  and  I  enclose  herewith  a  oopy  of  his  "ad." 

(Exclusive  of  the  Australian,  Argentine  and  llexioan  Offioes) 

Shis  Department  shov/s  a  loss  of  521,759.90.  In  1907  we  received  a  oredit 
from  the  factory  for  $8405.59,  this  amount  representing  a  cash  discount  which  the 
factory  allowed  on  our  purchases,  and  this  oash  discount,  deducted  from  our  General 
Expenses,  reduced  seme  very  materially.  Since  August  1st,  1908,  when  the  new  prioes 
became  effective,  this  cash  discount  was  discontinued.  From  Uaroh  1st  to  August  1st, 
1908,  this  disoount  amounted  to  $1949.98,  a  difference  of  $6455.61  in  favor  of  1907. 

Seferring  to  the  item  of  rent,  this  has  been  very  materially  increased, -.-on 
aocount  of  our  paying  $3600.00  per  year  rental  at  10  Fifth  Avenue  as  against  $650.00 
per  year  at  31  Union  Square. 

It  is  very  difficult  for  the  Foreign  Department,  exclusive  of  the  branch 
offioes,  to  show  a  profit,  as  all  goods  are  invoiced  to  our  branch  offices  at  faotory 
cost,  end  the  expense  of  handling  this  business,  so  far  as  clerical  work,  rent  and  other 
expenses  are  concerned,  is  borne  entirely  by  the  Foreign  Departrant.  One  way  this  could 
be  overcome  would  be  to  charge  the  Australian,  Argentine  and  Llexican  offices  their  pro¬ 
portion  of  the  Foreign  Department  e:menses.  This,  however,  is  simply  a  matter  of  book¬ 
keeping,  and  does  not  affect  the  net  profits  which  the  Foreign  Department,  including  the 
Australian,  Argentine  end  llexioan  offices,  turn.  over  to  the  national  Phonograph  Co.; 
but  it  would  show  just  what  the  Foreign  Department  is  earning  independent  of  the  branch 



P.  I.  Dyer  p  7 

R  3  LI  A  R  K  S 

If  immediate  results  are  desired,  undoubtedly  a  muiSh  better  showing  could  he 
made,  if  the  Lloxidan  and  Argentine  offices  were  discontinued  and  the  business  in  their 

territory  handled  from  Hew  York,  this  would  effeot-a  large  saving  by  eliminating  their' 


operating,  expenses.  On  the  other  hand,  this  aot ion  would  leave^fields  open  to  our  oom- 
Jeditors  and  the  territory  would  thus  ultimately  be  closed  against  us.  I  do  not  believe, 
however,  that  you  would  oonsidor  for  a  moment  talcing  suoli  action,  as  we  must  necessarily 
look  to  the  future  for  results. 

With  the  possible  exception  of  Australia,  business  in  foreign  countries  lias 
suffered  fully  as  much,  if  not  more  than  it  has  here.  In  Australia,  we  have  wraoti- 
oally  driven  out  all  other  cylindrical  records  and  machines  and  the  same  applies  to  Ar¬ 
gentine  and  I.ioxico.  On  the  other  hand,  there  seems  to  beA increasing  demand  for  disc 
machines  and  records.;  -  Shis  particularly  applies  to  latin-Anerioan  countries, 

some  of  our  jobbers  and  dealers  having  given  up  handling  our  lines,  taking  up  the  sale  of 
disc  machines  and  records,  olaiming  that  the  trade  demands  louder  reproduction,  a  better 
class  of  grand  opera  talent,  etc. 

In  conclusion,  I  would  soy,  appreciating  that  suocoss  in  business  is  necessar¬ 
ily  measured  by  the  amount  of  money  made,  I  have  used  endeavor  to  increase  the  sale  of  our 
goods,  at  tlie  same  time  keeping  down  our  expenses  to  the  lowest  possible  amount,  end. 

I  believe,  that  our  foreign  managers,  Uessrs.  \typer,  Kennedy  end  Iliabett,  are  working  with 
me  in  this  matter. 

Respectfully  submitted, 

L'onager ,  Foreign  Department. 


_  OF  THE 

0%cmw>  a CdUoru,  EDISON  MANUFADTUHINE  CD. 


July  6-1909. 

Hr.  P.  E.  Dyer,  President, 

national  Phonograph  Co., 

Orange,  H.  J. 

Dear  Sir:-,— 

I  am  in  receipt  of  a  telegram  from  Mr .  Kisbett 

reading  aS  follows:  — 

"If  you  can  obtain,  mail  at  once  letter  from  Edison  to 
Geo.  W.  Cook,  requesting  his  assistance  in  getting  President  Porfirio 
Diaz  to  make  a  few  speeches.  Believe  we  will  he  successful.  Reply 
by  telegram." 

If  you  can  obtain  such  a  latter  and  will  so  advise  me,  I 
will  immediately  telegraph  Mr.  Nisbett.  If  you  wish  to  send  Mr. 
Edison’s  letter  direct  to  Mr.  Cook,  kindly  address  same  t9  Geo.  V; 
Cook,  h/o  Mosler  Bowen  &  Cook,  Apartado  658,  Mexico  D.  P. ,  Mexico. 


Yquts  very  truly, 
r  Manager  Foreign  Department. 

.  tjp/i-vw 

Walter  Stevens,  Esq, 

Manager  foreign  Department, 
New  York. 

Dear  Sir: 

Regarding  the  telegram  from  Mr.  Nishctt,  I  hand  you 
herewith  three  letters  from  Mr.  Edison,  one  to  Mr.  Cook,,  the  other 
to  President  Diaz  and  a  third  to  Mrs.  Diaz.  Mr.  Ed i s on t tells  me 
that  he  met  Mr.  Diaz  in  New  York  in  the  early  days  and  that  they 
formed  quite  a  pleasant  friendship,  so  that  he  thinks  it  would  he 
the  wisest  course  to  present  the  letter  to  Mrs.  Diaz.  It  occurs 
to  me,  however,  that  lira.  Diaz  may  not  he  alive  or  the  President 
may  have  married  again,  so  that  Mr.  Cook  might  prefer  to  present 
the  letter  to  the  President.  In  case,  however,  he  thinks  the 
letter  to  Mr.  Cook  will  answer  the  purpose,  I  am  willing  to  leave 
the  matter  to  his  judgment. 

Yours  very  truly, 

PID/l  WW 

President . 




George  V/.  Cook,  "Esq., 

Mexico  City, 

Mexioo . 

My  dear  Sir: 

It  has  occurred  to  me  that  a  number  of  phonograph 
records  of  President  Diaz  would  be  very  acceptable  to  the  Mexican 
people  and  hardless  lesB  so  to  our  own  citizens,  who  so  wannly 
admire  his  high  character  and  distinguished  services.  I  will  be 
much  obliged  if  you  will  put  this  matter,  if  possible,  before  the 
President  and  endeavor  to  obtain  his  consent.  President  Saft  has 
made  twelve  records  for  us  and  Mr.  Bryan  a  similar  number .  If 
President  Diaz  will  agree  to  make  the  reoordB,  advise  me  and  I 
will  see  that  arrangements  are  made  to  obtain  them  under  the  best 
possible  conditions.  I  recall  the  visit  of  President  Diaz  to 
this  country  with  a  great  deal  of  pleasure  because  I  then  had  the 
opportunity  of  appreciating  his  high  qualities.  Kindly  express 
to  him  my  be3t  wishes  for  his  health  and  prosperity,  and  believe 

^fours  very  truly, 


July  8,  1909. 

My  dear  Mr.  President : 

Recalling  the  pleasure  of  ray  acquaintance 
with  you  in  the  early  days  of  the  electric  light  in  Hew  York,  I 
wish  to  obtain,  if  possible,  one  or  more  phonographic  records  in 
Spanish  of  any  matter  that  you  may  select,  each  preferably  not 
over  two  minutes  in  length.  These  records  I  am  sure  would  be  very 
eagerly  reoeived  by  your  fellow  citizens,  and  I  have  no  doubt  that 
they  would  orcate  much  interest  in  the  United  States,  where  your 
high  character  and  distinguished  services  are  bo  generally  admired. 
Both  President.  Taft  and  Hr.  William  J.  Bryan  have  aadh  made  twelve 
records  for  us  whioh  have  been  very  favorably  reoeived  by  the 
publlo.  If  you  would  signify  your  willingness  to  oblige  me,  I 
will  immediately  take  steps  to  have  the  records  made  in  the  beBt 
manner  possible  at  any  time  and  place  that  you  may  select. 

Aocopt,  Hr.  President,  my  best  wishes  for  your  health  and 
prosperity,  and  believe  me, 

Very  respeotfully  yourB, 

Hon.  Porfirio  Diaz, 


July  8,  1909. 

My  dear  Mrs,  Diaz: 

Can  I  enlist  your  support  in  obtaining  from 
your  distinguished  husband  one  or  more  phonographic  records  in 
Spanish,  on  any  subjects  that  he  may  Boleot,  each  preferably  not 
over  two  minutes  in  length?  I  am  sure  that  to  the  citizens  of 
Mexico  a  phonograph  message  from  President  Diaz  would  be  received 
with  the  respect  and  affection  that  his  distinguished  services 
warrant,  while  unto  our  own  people  these  records  would  be  of 
great  interest,  because  the  President  is  regarded  as  one  of  the 
greatest  men  that  this  continent  has  produced.  I  think  the 
President  need  have  no  fear  as  to  the  dignified  way  iri  which  the 
records  would  be  put  before  the  public,  because  President  Taft 
and  Hr.  Bryan  have  each  made  twelve  records  for  us  that  have  been 
very  enthusiastically  received  by  the  .American  people. 

Please  accept,  my  dear  Mrs..  Diaz,  my  sincere  good  wishes 
for  your  health  and  happiness,  and  believe  me, 

Yours  very  truly, 

Mrs.  Porfirio  Diaz, 


July  14,  1909. 

Frank  D.  Dyer,  Esq., 

C/o  national  Phonograph  Co.,  Ltd., 

V/illesden  Junction,  London. 

Deal’  Hr.  Dyer: 

Due  to  tlie  absence  on  his  vacation  of  the  nan 
who  sends  up  the  information  for  the  v/eekly  report,  I  was  not 
able  to  give  you  the  figures  for  last  w eek  yesterday  so  that  they 
would  go  out  on  to-day’s  steamer,  hut  I  give  them  herewith. 
PHONOGRAPHS  Combination  Regular  Total 

Domestic  shipments  1239  129  1368 

Foreign  shipments  5. 28  1  129 

Unfilled  orders  •  8074  718  8792 

Orders  received  2681  70  2751 

V/e  received  orders  for  297  ML  reside  machines  a,:ainst  127 
the  previous  v/eek. 

RECORDS  Ariberol  2-m.inute  Total  ■ 

Domestic  shipments  76,359  130,523  206,882 

Foreign  shipments  12,111  14,933  27,044 

Unfilled  orders-  256,, S38  317,364  •  574,002 

Orders  received  143,528  189,147  332,675 


Domestic  shipments  2,030 

Foreign  shipments  166 

Unfilled  orders  30$" 

Orders  received,  foreign  285 

Orders  received,  domestic  136. 


Unfilled  orders 
Orders  received 




2.  7/14/09. 



Foreign  shipments  2,000 

Domes  ti  c  shipments  80 

Unfilled  orders  29 

foreign  orders  received 
Domestic  orders  received  40. 


Unfillod  orders 
Orders  received 

•  Shipments 
Unfilled  orders 
Orders  received 


Shipmen  ts 
Unfilled  orders 
Orders  received 


Shipments  4,109 
Unfilled  orders  2,280 
Orders  received  4,183 


Shipments  11 
Unfilled  orders  28 
Orders  received  '22 


6  ,218 

L.  Dyer. 

§32,656.55  . 


§169,553 . 22. 

While  the  National  Company  has  received  within  the  last  few 
days  about  §93,000,  we  have  paid  out  §89,000  on  regular  accounts 
due  July  10th. 

The  orders  reoeivod'for  phonographs  show  an  increase  of 
2179  over  the  previous  week,  and  this  increase  is  represented 
principally  by  foreign  orders  for  1400  Standards  and  124  Firesides. 

3.  Vl4/0^&T1ONALPHONOORAPHOOHPANY  l'1.  X,.  Dyer. 

As  this  report  is  for  the  week  ending  July  10th,  there  will 
doubtless  he  large  orders  received  for  advance  records  the  week 
ending  July  17th,  although  perhaps  not  so  many  as  for  the  week 
ending  the  10th. 

The  50  Projecting  machines  ordered  were  all  taken  by  Pels or 
on  his  trip. 

ffilsi  orders  show  a  decrease  of  about  30,000  feet  over  lest 

v;e  ok. 

Orders  for  batteries  show  an  increase  of  nearly  2,000  and 
for  renewals^  an  increase  of  about  1,000. 

hr.  Wilson  suggested  that  I  send  you  the  magazines  or  clip¬ 
pings  from  them  regarding  the  Convention  at  Atlantic  City,  and  I 
therefore  enclose  several  herewith*  I  will  also  mail  you  a  copy 
of  the  Talking  Machine  World,  which  should  bo  received  tomorrow. 

I  also  enclose  copy  of  minutes  taken  at  meeting  of  Sales 
■Managers,  which  outlines  natters 'Olrsady  discussed. 

TJvcrything  is  going  along  all  right  hero.  X  will  take  care 
of  the  ttontolair  Bank  matter  on  the  20th,  and  I  go  on  my  vacation 
the  24th. 

With  best  regards  -to  you  and  Mrs.  Dyer  as  well  as  the  boys, 

I  am, 

Yours  very  truly, 





25.  CLERKENWELL  ROAD.  Battery  F 

August  lOtli,  1900 . 

.  flu /vf.. 

Thomas  A .  Edison,  Esq  . , 

Orange,  'lev.'  Jersey, 

”y  clear  lix  Edison, 

■t*  f  find  that  conditions  here  in  the  phonograph  business 

are  good,  $nd  that  the  sales  for  June  and  July  were  the  best  in  each  case, 
with  a  single  exception,  that  the  British  Company  has  had;  although,  of 
course,  the  Fireside  machines  and  the  new  C-em  attachment  have  been  import¬ 
ant  factors.  The  business  is  clone  very  largely  by  dealers,  who  make  a 
specialty  of  bicycles,  cameras,  and  sporting  goods  in  Cummer  and  phonographs 
in  Winter,  and  in  consequence  many  stores  which  I  have  visited  have  made 
rather  poor  exhibits  of  our  goods,  but  the  proprietors  tell  me,  in  ever -r 
case,  that  when  Winter  comes  on  conditions  will  be  reversed,  and  the  bicycles 
will  be  placed  in  the  background.  it  is  quite  natural  to  expect  that  the 

sale  of  our  goods  should  be  poor  in  Summer,  because  the  British  people  spend 
as  much  time  out  of  cloors  as  possible,  and  the^iise  the  phonograph  for  enter¬ 
tainment  during  the  long  Winter  evenings.  Even  the  stores  which  handle 
■talking  machines  exclusively  do  a  poor  business  in  Summer,  and  several  of  the- 
Factors  nave  expressed  surprise  that  these  stores  have  been  able  to  pull 
througn  during  the' dull  times.  Undoubtedly,  we  are  doing  90/'  of  the  cylin¬ 
der  business  in  this  country;  in  fact,  all  of  the  cylinder  lines  are  now- 

N.  P.  Co.,  Ltd. 

ip  ^  t;>  _  .t  _  August  10th,  ’09. 

The  artists  themselves  have  left  London  for  the  most  part  and  arc  now  on 
the  Continent,  but  I  expect  to  accomplish  more  in  Paris  and  Berlin. 

The  Film  business  is  not  at  all  satisfactory,  since  competition 
here  is  very  keen,  and  the  maximum  price  obtained  is  only  eight  cents  per 
foot.  Pictures  that  are  successful  in  America  may  be  absolute  failures 
here,  because  the  English  people  like  very  much  simpler  and  more  obvious 
plots,  and  they  refuse  to  appreciate  our  sense  of  humour.  Such  a  thing 
as  a  standing  order  would  b9  absolutely  impossible,  since  the  rental 
houses  have  a  pick  of  thirty  or  more  reels  per  week,  out  of  which  they  do 
not  select  more  than  twelve.  The  manufacturers  take  their  reels  around 
to  these  renters  and  exhibit  them  and  then  get  orders  if  they  can.  1 
believe  the  American  manufacturers  could  never  regard  this  country  as  a 
satisfactory  field  except  as  a  dumping  ground,  and  even  then  the  conditions 
are  very  unfavourable,  owing  to  the  special  character  of  the  business. 
Perhaps  if  the  American  manufacturers  combined  together  to  exploit  the 
European  field  through  a  single  distributor  they  might  do  better,  but  this 
is  a  scheme  I  will  look  more  fully  into  and  discuss  with  you  when  1  got  back 

The  Copyright  Committee  of  the  Board  of  Trade  has  been  sitting  here 
for  several  months,  and  there  can  be  no  doubt  but  that  they  will  recommend 
a  change  in  the  law  to  cover  phonograph  records.  1  appeared  before  the 
Committee  last  week  for  examination,  and  urged  that  something  should  be  done 
as  in  America,  to  prevent  monopolisation,  and  maintained  that  the  Royalty 
should  not  exceed  one  farthing  per  record. 

In  reference  to  Hr.  Harks,  I  have  straightened  out  the  matter  of 
his  accounts  and  have  arranged  to  get  hold  of  the  deposit  which  was  put  up 
to  guarantee  our  rent  here,  amounting  to  about  H  S, 000.  All  of  our 

N.  P.  Co.,  Ltd. 


Aug.  11,  190 

Frank  p,  By  or,  138  q. , 

c/o  National  Phonograph  Co.,  Ltd., 

V/illosdon  Junction,  London. 

Boar  Hr.  By or: 

I  give  you  ho low  condition  of  the  business  for 

week  ending  August  7th: 

P.i£OiiOGHAHIS  Combination  Regular 

Rouen t i  r.  shipments  1118  123 

Foreign  shipments  -  909  5 

Unfilled  orders  6882  982 

Orders  received  984  602 

RECORDS  _  Amber ol 

Domestic  shipments  .  78,099 
Foreign  shipments  17,517 
Unfilled  orders  287,953 
Orders  received  (>4,219 


2 -minute 





Foreign  shipments  2023 

Domestic  shipments  181 

Unfilled  orders  308 

Orders  received  (Fomeighc)  2172 

Domestic  ordei-3  received  134  ‘ 


Sliipments  100 

Unfilled  orders  35 

Orders  received  90 


Foreign  shipments  2003 
Domestic  shipments  81 
Unfilled  orders  33 
Orders  received  (Foreign)  2001 
Domestic  orders  received  61 






56 , 715 

2 .  8/ll/09.  prank  D.  Dyer . 



Unfilled  orders 
Orders  received 


Shipments  - 
Unfilled  orders 
Orders  received 

complete  battery  ems 

Shipment  3 
Unfilled  orders 
Orders  received 


Unfilled  orders 
Orders  received 

MlglBT-yjifO  .VAn;n?r;g 

Unfilled  orders 
Orders  received  ■ 





I  Just  called  ip  Harry  Hiller  to  sec  whether  he  hid  anything 
interesting  to  tell  you,  and  he  told  mo  the  following : 

The  price  of  cement  has  increase  10  cents  por  horroll  and 
the  shipments  are  tecping  up. 

’7 a  shipped  321  cells  of  Storage  Battery  up  to  the  present 
time  this  month. 

Lansdon*s  husineso  i3  a  little  Better.  Hillikon  has  left 
them  on  account  of  Ilia  health  and  has  gone  out  to  California.  They 
have  advanced  the  book-keeper  (Ereeman) ,  end  Dans den  and  Harry 
taller  are  signing  checks. 







10 , 080 

3,  349 




a  8/ii/09&tionalphonogbaphoompany  prank  L.  Dyer.,  Edison-  continues  well  and  Tom  Jr.  is  improving  slowly 
but  is  still  in  the  Sanitarium. 

Although  I  arranged  for  copies  of  the  minutes  of  the  mootings 
of  tho  Tfcce outline  Committee  to  bo  seat  to  you,  I  am.  not  sure  that 
this  was  uono  v/hile  I  was  away  on  my  vacation  so  I  am  enclosing 
copies  fol  6ho  past  two  weeks  and .  id  11  also  cncloso  a  copy  of  the 
minutes  for  to-day. 

ur.’P.  Gordon  Dunne,  of  Dome,  lias  sent  to  you  for  iirs.  Dyer 
a  necklace  of  Homan  pearls.,  Without  the  clasp,  Vttch  will  bo  2ir.ld 
in  t.ho  safe  until  you  return.  I  have  acknowledged  receipt  of 
this  to  Jilin.  Ho  also  sent  one  to  3'ro.  Edison. 

V/ith  host  regards,  I  remain,. 

TELEPHONE  277-89 

tloaCI  £di^<rru 

x>m^apni£/ djxz/icatiie' Qtv^l/iorwgrcyde/ 


Entree  des  Merchandises 

3,  Rue  des  Messaoeries 

42  ,  Rue  de  Paradis  ,  42 
Qzri^  &  August . I3tll . 1909. . '/<? . 

SliOlflfta  A.  KHIOOH,  Hfsti.  , 

OP.AHGK  (H.J.  )  U.S.A. 

My  dear  Mi*.  Hdison, 

I  have  returned  from  a  trip  of  several  days  at  Oauterots, 

in  the  Pyrenees ,  where  I  have  been  negotiating  with  Slesak,  of  whom 
everyone  speaks  most  highly  as  a  oojaing  tenor.  da  has  been  engaged 
by  the  Metropolitan  Opara  Company  and  jaateaa  his  first  appearance 
in  Hew  York  in  November  or  later,  but  will  mako  a  tour  of  (six  weeks 
through  the  principal  American  cities.  Of  course  he  may  not  be 
very  successful  but  he  stands  very  high  in  Oermany  and  was  well 
received  in  London.  Although  an  Austrian  by  birth,  he  sings  in 
both  Italian  and  French  and  his  repertoire  .includes  all  of  the  great 
German,  Italian  and  French  operas.  He  is  «:5  years  old,  weighs 
350  pounds,  is  6  feet  6  inches  in  height,  good  looking,  has  a  fine 
voice  and  should  make  a  great  furor  in  America.  He  also  has  a 
strictly  non-Buropoan  habit  of  getting  up  at  7  o'clock  in  the  morning 
and  he  possesses  a  well-developed  sense  of  humour. 

At  the  present  time  he  is  under  a  10  years'  contrat  with  the 
Gramophone  Company,  dating  1906  at  Mm  time  when  he  was  not  Well- 
known,  and  afterwards ,  last  year,  he  received  53000  crowns,  or 

l U^lj 

GuiUMpnic  £b/wnm}raf>/ui  ('Jt\\yorv  F  -K- 

T.  A.  BDIBOH.  ■jiao.. 

to  us  and  concerning  which  I  v/tu  tell  yon  privately. 

!31o55ak  soeias  to  feel  that  the  Gramophone  Oo.  yjLll  not  meet 
thio  offer  and  ho  is  plainly  anxious  to  associate  himself  to  us. 

At  any  rate  ho  will  communicate  the  of -’or  immediately  to  tho  ommo- 
Phono  People  and  they  >n.u  have  »  weaho  to  decide  whether  or  not 
they  wi.u  ; ,aoet  un.  If  they  do  not  ideet  tho  offer,  vra  will  then 
have  tho  exclusive  sear/ ices  of  a  man  "/ho  has  ovory  ohanoe  of  being 
a  great  success.  But  if  they  do  uoot  the  offer,  it  win  show 
them  how  foolish  it  is  for  the  ?,  Coi.rpaniou  to  ooj.poie  along  the 
linerj  of  .great  opera  talent.  ft  ’'ill  also  show  the  artist  that 
are  in  the  field  for  his  talent  and  he  will  hesitate  before 
Waking  exclusive  contracts  with  the  Gramophone  Oompany. 

In  a  day  or  two  t  ’-'ill  ’trite  you  more  fully  an  to  what  I  find 
to  bo  the  situation  in  Prance. 

Yours  verv, 

er^c^i  77.  /^7r_r^r 



/A  V  f  • 

'  A'iy? 

(\\y/  ■  )  h* 

\  \//  :.fy.  Dyer  said:  "I  left  .for  London  on  July  10th,  joining  my 

family  there,  and  spoilt  about  two  weeks  on  a  motor  trip  through 
the  West  and  South  of  England.  During  the.  month  of  August  and  up 
to  the  t.ime  of  calling  for  Home  on  September  3rd  I  devoted  a  good 
deal  of  attention  to  business  matters.  The  outlook  for  business  ' 
in  the  phonograph  lino  for  the  coming  Pall  is  vory  enco.nraging 
oo  far  as;  the  Continent  of  Europe  in  concerned,  while  in  Great 
'Britain  I  anticipate  a  vary  brisk  return  to  normal  conditions, 
and  in  fact,  I  think  our  business  for  the  coming  Pall  will  bo 
exceptionally  good.  Business  in  all  lines  is  gradually  returning 
to  normal  and  the  phonograph  business  in  Pur op c  is  no  exception. 

Vo  have  boon  gradually  extending,  our  moving  picture  business  in 
■Europe  so  that  it  has  now  reached  very  respectable  proportions. 

X  find  that  the  European  audiences  arc  vory  much  interested  in 
American  pi  staves,  and,  notwithstanding  the  fact  that  in  Europe 
there  are  more  than  fifty  manufacturers  of  moving  picture's,  the 
fierceness  of  the  resulting  competition  seems  to  be  almost  entirely 
restricted  to  European  films.  VJhile  in  London  I  appeared  before 
the  Copyright  Committee  of  the  Board  of  Trade,  Lord  Oorrell 
Chairman,  and  containing  among  its  member s  Anthony  Hope,  the  novel¬ 
ist,  and  Dir  Lawrence  Alma  Taderna,  the  painter.  The  recommenda¬ 
tions  of  this  Commit  too  will  be  made  to  Parliament  and  probably 
Cj&.-iod  in  a  Government  Bill,  but  whether  the  law  will  be  passed 
wit.-,  out  amendment  or  passed  at  all  is  not  entirely  certain.  From 
the  cbar-ov.T  of  the  questions  asked  mo  by  the  Committee,  I  be¬ 
lieve  the  Committee  will  recommend  a  Bill  substantially  like  the 
new  American  law,  extending  the  rights  of  composers  to  mechanical 
musical  instruments.  The  Committee  seemed  to  be  impx’oseed  with 


the  danger  of  granting  absolute  rights  hocanae  of  the  possibility 
of  monopoly,  and  will,  X  believe,  make  some  recommendation  by 
which  copyrights  may  bo  universally  used  under  some  equitable 
arrangement . 

One  of  the  objects  of  my  trip  was  to  arrange  for  Grand  Opera 
talent,  and  in  this  ronpeot  I  was  entirely  successful.-  To  my 
mind,  the  most  important  acquisition  was  the  exclusive  contract 

that;  I  was  able  to  melee  with.  I<eo  Slczalc,  with  whom  I  spent  a 

couple  of  days  m  ft  beautiful  little  town  of  Cnntcrota  in  tho 
Pyrenees,  a  few  miles  from  the  Spanish  border.  lir. .  SlezcO:  has 
made  a  contract  with  the  National  Phonograph  Company,  giving  us 
his  exclusive  servioes,  and  wo  will  soon  be  able  to  put  out  his 
records.  I  may  say  that  wo  will  alone  be  in  a  position  to  sell 
French  arid  Italian  records  of  Sleaalc,  ao  well  as  records  of  his 
principal  roles  to  be  sung  by  him  during  his  coming  American  tour. 
Personally  I  found  Sieaak  to  be  a  most  attractive  and  charming 
man  .  Ho  is  u  tremendously  big  fellow,  being,  X  should  say,  3 in 
feet  six  inches  in  height  and  weighing  ;iiwo  hundred  and  fifty*£SS3 
pounds,  thirty-four  years  old  and  full  of  boyish  life  and  enthu¬ 
siasm.  Hi 3  reputation  is  very  great  in  Europe  and  I  predict  that 

he  will  bo  an  immense  success  with  American  audiences.." 


Willesden  Junction. 

c  F.Th/N.W. 

/  / 

F.L.  Xh/ar  Esq* ,  /  - 

The  National  Phonograph  Company, 

Orange,  New  Jersey,  U.s. A.  ^  QCT.'H  ; 

Pear  Sir, 

/r  Oot.  9th,  1909. 
.  -He'jgi8-t«red- 

We  beg  to  acknowledge  receipt  of  your  cablegram  addressed 
to  Mr.  Graf,  which  we  translated  "Owe  Riebeck  about  $30,000,  overdue 
and  they  are  pressing  for  payment,  how  much  if  any  can  you  send  him 
in  order  to  help  us  out",  and  at  once  answered  you  by  cable  reading 
"Dyer  Impedimos  you  Psrdissipo  Nachtslaap  Inflabello  another 
Muskaj an,  Randomly",  which  you  will  interpret  as  "Have  sent  you 
Sept.  29th  $25,000:  can  spare  another  $15,000." 

The  cheque  we  sent  you  on  Sept.  29th  will  no  doubt  be  in 
your  possession  by  now,  and  as  stated  in  our  cable  we  can  spare  you 
another  $15,000  dpring  next  week.  Our  September  accounts  are  just 
coming  in,  and  it  is  likely  that  by  the  end  of  this  month  we  can 
sand  you  a  further  remittance. 

Mr.  Graf  is  at  present  on  the  Continent,  and  therefore 
cannot  reply  personally  to  your  cable,  but  we  shall  try  to  get  the 
outstanding  accounts  in  as  quickly  as  possible  and  endeavour  to 
assist  you  by  further  remittances. 

Chief  Accountant. 


( /dM?) 


Graf,  London. 

Pay  immediately  Rieheck  hills  July  15th,  22nd  and 
25th,  total  sixty  four  thousand,  six  forty-two  marks.  Hava 
notified  them  this  will  he  done. 

10/14/09.  Dyer. 

Berlin,  Oct.  16,  1909. 

To  explain  situation  long  cablegram  necessary.  Original 
material  came  from  old  plant  Wansleden.  Weekly  capacity  ten  to 

15  tons - entire  output  was  always  placed  at  your  disposal. 

Additional  material  came  from  new  plart  Webau.  Weekly  capacity 
5  tons  to  10  tons,  opened  1908.  Webau  coal  different  from 
Wansleden,  yielding  like  that  of  other  manufacturers  a  sticky 
montan  wax,  a  physical  property  solely  depend  ng  on  raw  material, 
independent  of  presence  or  absence  of  matter  insoluble  and  other 
chemical  constants.  Webau  wax  purer  because  coal  mined  there 

on  surface  contains  impurities  which  necessitate  filtering - 

otherwise  wax  would  contain  4$  matter  insoluble  in  benzol, 
you  have  complained  of,  but  only  recently  explained  trouble. 
Riebeck  discovered  by  chance  stickiness  in  Webau  and  all  other 
manufacturers'  material,  Wansleden  excepted!,  before  you  explained, 
and  has  since  used  'Wansleden  coal  in  Webau.  Have  ^hipped 
Sept.  30th,  Augusta  Victoria,  10  tons  Wansleden  material;  Oct. 

17th,  Bleucher,  30  tons  Wansleden  and  30  tons  Webau  material. 
Latter  80^  from  Wansleden  coal.  Oct.  21st,  30  tons  Wansleden, 

30  tons  Webau  material ,  all  of  Wanslden  coal.  Oct.  31st,  30  tons 
Wanna tpfrgwfr  Wansleden  material.  During  November,  three  shipments 
each  30  tons,  that  is,  until  last  of  Nov.  250  tons.  Prom  Dec. 
1st/  15  tons  weekly.  These  shipments  depend  on  option  for  500 
tons,  which  I  understand  you  have  not  yet  exercised.  Removal  of 
one  extractor  from  Webau  to  Wansleden  will  enable  Riebeck  to  give 

from  Deb.  15th,  20  to  25  tons  weekly,  and  if  you  can  contract 

for  additional  1,000  ton,  will  enlarge  Wansleden  plant  to  give 
you  weekly  30  tons  beginning  of  April.  Negotiations  are  now 
opened  with  other  manufacturers,  and  above  figures  will  enable  you 
cable  additional  quantity  needed  weekly. 

Graf  i 

Oct.  19,  1909. 

Mr.  Thomas  Graf, 

Edison  Gesellschaft, 

Berlin,  Germany. 

Bear  oil  reply  t0  your  cable  of  the  16th,  X  have  "dust  cabled 
you  as  foil ows: 

"Replying  your  cable  16th.  We  cable  Kiobeck  Oct.  8th,  would 
take  500  tons  on  which  had  option,  and  we  are  now  willing  to 
•olace  new  contract  for  additional  1.000  tons,  conditional  on 

with  Other  manufacturers,  will  place  contract  with  one  furnisnmg 
satisfactory  5  ton  sample  for  500  tons  to  be  shipped  5  tomor 
more  weekly;,  if  price  as  low  or  nearly  so  as  Riebecks.  Vriting 

T  am  enclosing  copy  of  letter  X  have  just  written  Hiabeck, 

^  T^elieve  oS  our  part  covers  fully  the  situation  with  them, 
as  outlined  in »our  cable,  and  leaves  no  loop-hole  whatever  for  them 
to  use  as  an  elcuse  for  not  being  able  to  make  shipments  as 
promised  in  your  cable  up  to  April  1st,  and  after  that  supply  us 
with  30  tons  of  original  quality  montan  wax  weekly. 

Regarding  your  negotiations  with  other  manufacturers  relative 
to  supplying  us  with  montan  wax,  ray  cable  above  quoted  advises 
you  that  if  any  other  manufacturer  can  furnish  us  with  a  fiyeton 
samule  that  proves  satisfactory,  that  is,  similar  to  th_  original 
qual ity  furnished  by  Riebeck,  aAd  if  the  price  they  can  quote  is 
as  low  or  nearly  so  as  Riebeck's  present  price,  we  will  place  a 
contract  for  500  tons,  to  be  shipped  in  quantities  of  at  least 
five  tons  weekly.  I  did  not  quote  to  you  Riebeck's  price  in 
this  message,  as  I  assume  you  have  learned  from  them  what  it  iB, 
but  in  case  you  have  not,  would  advise  that  the  last  contract 
placed  with  them  April  14,  1909,  called  for  500  tons  at  50  marxs 
per  100  kilos,  less  4$  rebate,  with  an  option  up  to  Bee.  31,  1909, 
?f  500  additional  tons,  and  in  case  this option  was 
us,  the  rebate  on  the  last  500  tons  was  to  be  6j£  and  ^rebate 
on  the  first  500  tons  was  alBO  to  be  increased  to  6/..  This 
means  that  on  a  new  contract  for  1,000  e^VcxTkiloB 

to  place  with  them,  the  price  should  be  50  marks  per  100  kilOB, 
less  6$  rebate  and  we  should,  therefore,  if  possible,  obtain 
nearly,  if  not  quite  as  good  a  price  from  any  other  manufacturer 

with  whom  v/e  may  place  the  order  for  500  tons,  although  on  account 
of  the  lesser  quantity  and  smaller  weekly  shipments,  it  is  barely 
possible  they  will  ask  a  trifle  more. 

You  will  perhaps  think  it  strange  that  having  advised 
Riebeck  in  my  letter,  of,  which  I  enclose  you  copy,  that  the 
amount  they  can  supply  us  as  per  your  cable  advice,  will  be 
sufficient  for  our  requirements,  we  should  require  additional 
quantities  from  other  sources,  and  if  so,  I  would  say  that  while 
their  supply  will  take  care,  of  our  actual  requirements,  and  a 
little  more,  based  on  our  present  output  of  records,  we  expect  the 
sale  of  records  to  inorease  very  materially  within  the  next 
year,  and  furthermore  we  have  decided  to  accumulate  a  six  month's 
supply  to  be  kept  on  hand  at  all  times,  to  guard  against  just 
such  contingencies  as  we  have  experienced  since  the  trouble 
sprung  up  with  the  Riebeck  people.  Another  cause  for  our  desir¬ 
ing  to  connect  with  some  other  manufacturer  is  to  guard  against 
any  possible  catastrophe  that  might  occur  with  the  Riebeck  people, 
such  as  a  fire  in  their  plant,  a  Btrike  among  their  help,  and 
perhaps  other  things  which  cannot  bo  floreseen. 

I  trust  the  letter  I  have  sent  Riebeck,  together  with  this 
one  to  you,  will  fully  enlighten  you  as  to  our  position  and 
requirements,  and  that  Very  shortly  we  will  receive  advice  from 
you  regarding  five  ton  samples  shipped  from  other  manufacturers. 
■Whenever  a  sample  is  shipped  us,  please  write  us  fully  concerning 
same,  that  is,  give  if  possible,  a  full  analyses  of  the  material, 
same  as  furnished  by  the  Riebeck  people,  also  the  price  quoted, 
when  shipments  oould  begin,  &c. 

Yours  very  truly, 


General  Manager, 


0  Oct.  19,  1909, 

A.  Riebeck'ache  Kontan-Y/erke , 


Halle  a.  Saale,  Gormany. 


Wo  have. not  acknowledged^or  confirmed  sending  of  various 
cables  which  have  paused  between  us  since  my  letter  of  Oct.  5th, 
and  do  not  think  it  necessary  to  do  so  at  this  time,  as  we  believe 
they  have  been  thoroughly  understood  by  both  of  us,  and  if  not, 
a  long  cable  which  we  received  yesterday  from  our  Hr.  Graf,  con¬ 
tents  of  which  you  are  doubtless  familiar,  fully  explains  the 
present  situation,  enlightens  as  to  vdiat  you  can  do  in  the  way 
of  future  shipments,  and  v<hat  we  lave  go  to  do,  in  order  to  have 
future  shipments  increased  in  quantity,  therefore,  his  cablegram 
is  tho  one  which  wo  will  take  up  in  thiB  letter.  This  oablo  states: 

"Have  shipped  Sept.  30th,  Augusta  Victoria,  10  tons  YVansloden 
material;  Oct.  17th,  Bleueher,  30  tons  of  \7ansleden  and  30  tons 
Y/ebau  material.  Latter  80£'  from  V/ansleden  coal.  Oct.  21st, 

30  tons  V/ansleden,  30  tonB  Webau  material,  all  of  Y/ansleden  coal. 
Oct.  31st,  30  tons  Y/ansleden  material.  During  November,  three 
shipments  each  30  tons,  that  is,  until  la3t  of  November  250  tons. 
Prom  Dec.  1st,  15  tons  weekly.  These  shipments  depend  on  option 
for  500  tons,  which  1  understand  you  have  not  yet  exercised. 

Removal  of  one  extractor  from  7/ebau  to  V/ansleden  will  enable  Rie- 
beck  to  give  from  Peb.  15th,  20  to  25  tons  weekly,  and  if  you  can 
contract  for  additional  1,000  tons,  will  enlarge  V/ansleden  plant 
to  give  you,  weekly  30  tons  beginning  of  April." 

If  you  make  shipments  conforming  to  these  quantities  and 
dates,  the  250  tons  which  you  will  ship  by  the  last  of  October 
will,  by  our  mixing  in  the  poor  material  v/e  have  in  stock,  tide 
us  over,  and  if  from  Dec.  1st  to  Peb.  15th,  you  can  give  us  15 
tons  weekly,  and  thereafter,  up  to  the  beginning  of  April,  20  to 
25  tons  weekly,  we  will,  unless  business  increases  very  materially, 
be  able  to  got  along,  and  after  April  1st,  if  you  can  give  us 
30  tons  weekly,  all  of  tho  original  quality  of  material,  we  now 
believe  we  will  receive  enough  to  take  care  of  our  requirements. 

If,  however,  you  can  in  any  v/ay  possible  increase  the  shipments 
of  good  material  over  and  above  the  15  tons  promised  from  Dec. 

1st  on,  we  most  urgently  request  you  to  do  so. 

Regarding  the  500  tons  on  which  we  have  an  option  until 
Dec.  31st,  we  cabled  you  under  date  of  Oct.  8th,  that  we  would 
take  this,  and  you  may,  therefore,  make  arrangements  for  your 
output  accordingly. 



Ab  to  a  new  contract  for  1,000  tons,  which  Mr.  Graf  referB 
to  in  his  coble ,  and  which  if  placed  will  enable  you  to  enlarge 
your  Vansleden  plant  sufficiently  to  give  us  30  tons  of  original 
quality  material  weekly,  we  are  perfectly  willing  to  place  a  new 
contract  for  this  additional  quantity,  provided  price  remains 
same  as  on  present  contract,  and  quality  is  guaranteed  us  to  he 
the  same  an  originally  furnished,'  shipments  to  begin  at  the  ex¬ 
piration  of  the  present  contract  and  to  continue  weekly  at  the 
rate  of  not  less  than  30  tons  per  week.  If  you  will  make  up 
and  -forward  to  us  a  new  contract,  based  on  these  prices,  terms 
and  conditions,  we  will  be  only  too  glad  to  execute  same  and 
return  to  you  innediately. 

You  may  accept  this  letter  as  our  acceptance  of  contract 
for  the  500  tons  additional,  on  vftiich  we  had  option  until  Dec. 
31st.  terms,  prices  and  conditions  governing  which  are  fully- 
covered  in  original  contract  covering  500  tons  dated  April  14, 

1909 "if  the  promises  of  shipment  given  in  Mr.  Graf's  cable  are 
lived  up  to  by  you,  we  believe  v/e  can  now  see  our  way  out  of  a 
very  serious  predicament  which  has  threatened  us  for  -  the  past 
three  months,  but  should  there  be  any  failure  on  your  part  to 
msVp  shipments,  as  stated  in  his  message,  we  would  again  be  com¬ 
pelled  to  face  the  same  terrible  experience  we  have  been  going 
through,  therefore ,  trust  you  will  see  that  no  slip-up  is  allowed 
to  take  place. 

Kindly  acknowledge  receipt  of  this  letter  at  once,  advising 
us  fully  on  each  and  every  point  brought  up,  and  particularly 
in  regard  to  shipments  being  made  in  accordance  with  advice 
in  Mr.  Graf's  cable. 

Yours  very  truly, 

General  Manager. 



Ur.  Frank  L.  Iyer,  Presi don’t, 
national  Phonograph  ,0o.. 
Orange,  N.  J. 

Pear  Sirs 

10  Fifth  Avenue. 




October  20,  1909. 


Voiy  soon  after  you  sailed  for  Europe,  llr.  H.  P.  Killer  asked  me  to  present 
to  llr.  Edison  my  Annual  Report  addressed  to  you,  and  answer  any  questions  he  might  ask 
regarding  seme.  I  followed  Hr.  Killer’s  instructions,  and  in  going  over  the  report 
with  Kr.  Edison,  the  matter  of  General  Expense:  of  the  Foreign  Department,  i.o.,  aside 
from  the  Australian,  Hexioan  and  Argentine  Offioes,  was  taken  up.  I  explained  to  Kr. 
Edison  that  it  had  been  ny  custom  to  ohargo  all  general  expenses  as  incurred  in  handl¬ 
ing  the  foreign  business ,  which  included  business  done'with  our  Australian,  Hexioan 
and  Argentine  Offices,  to  the  Foreign  Department..  This  naturally  makes  a  very  bad 
shaving  for  the  Foreign  Department  proper.  He  suggested  that  this  general  expense 
should  be  divided,  and  a  percentage  of  same  be  charged  baok  to  the  several  branch 
offioes.  By  so  doing,  it  would  actually  show  just  what  profits  the  Foreign  Department 
were  making  on  miscellaneous  business,  exclusive  of  the  Hexioan,  Australian  and  Argen¬ 
tine  branches.  If  this  percentage  of  expense  was  chargod  pro  rata  to  the  different 
offices,  he  seemed  to  think  that  an  adjustment  should  bo  made  regarding  the  general 

expense  of  the  National  Phonograph  Company,  Whioh  is  now  added  to  the  factory  cost  of 
all  material  supplied  to  us..  As  it  now  standB,  it  is  necessary  for  our  branch  offioes 
to  pay  their  share  of  the  general  expense  of  the  National  Phonograph  Company,-  their 
share  of  our  general  expense,  and  added  to  this,  their  own  general  expense. 


ITo-.vv/ith  regard  to  the  national  Company's  expense,  I  will  enumerate  some  of 
the  items  a  share  of  whioh  we  are  called  upon  to  bears - 

FTiSIGHT,  IHSUHANCE,  ETC.  This  item  represents  all  expenses  incurred  by  the  factory  in 
delivering  domes tio  freight  shipments,  and  v/e  enjoy  no  -benefits  therefrom,  as  all  goods 
sold  to  the  Foreign  Pepartment  are  f.o.b.  Orange,  no  freight  allowance  being  made. 

AEVETOISIKG.  You  expend  enorm.ous  sums  eaoh  year  in  domestic  advertising,  but  we  re¬ 
ceive  no  benefit  from  this  expenditure,  as  all  advertising  done  by  the  Foreign  pspsrt- 
ment  is  changeable  to  our  aocount.  The  some  also  applies  to  printing  and  stationery, 
traveling  expenses  and  salaries  of  salesmen,  cables,  telegrams,  oto.  I  night  enumerate 
a  great  many  other  items  of  expense  from  which  v/e  receive  no  benefit. 

At  the  time  of  our  oonvorsation,  Ur.  Edison  stated  that  upon  your  return  from 
Europe  he  would  lilto  to  taka  the  matter  up  with  you,  and  I  respeotfully  submit  the  abovs 
for  your  kind  consideration. 


Manager,  Foreign  Eepartmont . 

Thomas  Edens  Osborne, 

DEPARTMENTS.--/)’™/'  Hitters,  Safotie  &mr(iig  Soaj>,  Edison  Eiomgrafh,  Gramot/m 
&*#»**»■  n'“‘  "•*  *m  "fiords  for  these  Instruments  in  the  North  of  Ireland 

'  nr. 

U/o  ,ic 

4  Donegall  Square  West  mm ,  an, 


Edison,  Esq . , 

3a:,&»  National  Phonograph  Uo  . 

,  id*  Avenue  ,  Orange  , 


..Mr  ?d .  jjpTpsrj':.'.:!  9  '*o  9 

r  iV 

’  Phono,; 

~J oA-  CCj  b^^tsodS' &£L*Pc. 

ujuu  *~Jr  Lfcrrr  S 

writing  yo*  as.  one  -’ho  h&S  ton  praoiicallyX 

"  . .  ‘  J"  *  W^o-Ph  :•  ’oduots  in  this  country ,  the  first  ^ 

I  y'urchasod  for  s,,o  having  bool^ring^ 

(ChicWfWfoT  ■!«  3flQ'<  ,m,-.  4_„j.  .  ^  C-  tJ-^a*(se*-es£-  cr*  •*-  -/  £.  k-  dC**«H 

nilov,  STorki  but  had  to 

to  this  cop 
r  ^irm  in 

(Ohio ago)  in  J89B.  The  instrument  cost  ite'seoTOci 

J . t;t”n0<i  1,0  /W:ri0f’’  on  f-oeount  of  ray  importation ^of^Lt  to  thisjjopntry 

bSln3  an  tofrinaoapnt  of  tho  rights  enjoyed  by  a  particular  < 

London  whose  name  1  for  the  moment  forget.  X  hate  been  for  ye^s> 
factor  for  the  National  Phonograph  Go.,  of  London  and  need  harfosay  i 
take  a  particularly  lively  interest  not  only  in  the  Phonograph  but  in 
your  own  celebrated  personality.  My  special  object  in  writing  you  to-day 
is  to  enclose  a  letter  received  from  the  Pathological  Lecturer  of  the 
queen's  College  Belfast,  Dr.  V’.  J.  Maguire,  P.R.G.P.,  who  called  with  nn 
yesterday  and  indicated  the  immense  advantage  which  his  profession  would 
have  in  possessing  an  instrument  capable  of  recording  he  abounds,  which 
can  only  be  studied  at  present  by  means  of  the  ordinary  Binaural 
stethoscope.  I  do  not  think  I  require  to  add  anything  to  what  the  Dr. 
has  said  in  his  letter,  his  requirements  being  so  clearly  and  tersely 
expressed  therein. 

bet.  :;:7,iyC'9. 

Thomas  Oraf ,  fieri,  , 

c/o  national  PKon  Sfes^gjarty,  Ltd., 

V/iilesden  Junction,  Londonm  I’.O. 

Lngl  and. 

:.!y  dear  Ur.  firuf  :» 

You.  uiil  recall  that  we  Lew.  a  number 
o::  trike  rule,  ting  g;e-nern.liy  to  the  matter  of  reducing 
expenses  to  a  minimum,  and  1  suggested  the  T>o»aibiiity 
of  our  nuking  rhinr-onte  o  <  r  eonrdn  and  possibly  machines, 
direct  from  Orange  to  your  factor;;,  thereby  saving  the 
cost  of  h’indling,  unpacking  and  r  .rnokinj  }\i  Loudon. 

You  thought  that  this  might  he  done  i.i  oo.uo  casco,  and 
I  wish,  therefore,  you  'would  give  the  Mutter  considera¬ 
tion  and  advise  »a  just  vhat  you  think  of  the  plan  and 
how  it  can  be  worked  out.  It  doss  soem  to  me  that  in 
case  of  advance  orders  for  the  regular  monthly  lists,  it 
ought  to  be  possible  for  u«  to  moke  oupmntB  direct  to 
your  factors. 

I  bring  this  matter  to  your  attention  because 
?.Ir.  Edison  has  again  mentioned  it  to  me. 

Yours  very  truly. 




"t  - 

Uotober  26,1909. 

Thomas  Graf,  Esq.  , 

c/o  national  Ihon.  Co.  ltd., 

Y.'illeuden  Junction,  London,  E.C. 


’.fy  dear  Graf :  - 

‘.’any  thanks  for  your  very  int< “resting 
letters  from  Berlin  of  the  12th  and  14th  insts.  on  the 
subject  of  grand  opera  talent.  'Whenever  you  msilce  a  contract 
with  any  urtist,  I  v.-ish  you  would  send  the'  contract  over 
here  for  filing,  together  with  a  translation,  retaining  one 
copy  for  your  own  files,  in  order  that  wo  may  keep  the 
matter  straight  from  this  end.  I  note  that  you  have  already 
made  contracts  with  Lu^jiu,  BiBohoff,  Boomer  and  Y/hitehill. 

1  wish  to  congratulate  you,  especially  in  securing  Lavia, 
and  1  am  very  pleas'ed  with  the  reasonable  arrangements  you 
have  been  able  to  make  in  the  various  cases. 

Regarding  Distinn,  can  you  find  out  what  her 
present  arrangement  is  v/ith  the  Gramophone  Company,  in  order 
that  v/e  might  tell  how  high  to  bid.  Ghe  might  drop  some 
hint  as  to  what  they  have  been  giving  her  and  what  they 
would  be  willing  to  offer  for  a  further  contract.  Your  work 
in  connection  with  grand  opera  talent  has  been  very  satisfac- 
+  r.nrt  t  Vin-np  that  vou  will  be  as  successful  in  the  fu- 


Thomas  Graf ,  Ksq. 

tore.  I  reel  «»*  ®*  “  f°°*“°14  ”  ’1U 

ahlc  to  mahe  noma  rapid  progress. 

,  ,,,P  have  just  retained  the 

'in  thin  connection,  we  nave  ju 

e.rrtoc,  rf  -  .»«*■  *»  »*  14  ~  ““tW' 

„*  no.allly  Utar  on  «*  »»  «  *">•»  “  ”hl°“  °"C 
,m  not  largely  under  your  direoUon.  So  for  »«  *>“> 

not  aoeonyUe-ed  very  -  *  «**  “«  **  4  W  ^ 

rnun  for  the  place. 

Yours  very  truly, 

Hay'.'H  K. 






Ootober  29,1909. 

Thomas  Graf,  Esq. , 

c/o  national  Phonograph  Co.  Ltd., 

\Villenden  Junction,  London,  L.c. 

England . 

Boar  Hr.  Graf:- 

Yours  of  the  15th  inBt.  from  Berlin 
has  Been  received,  and  1  have  already  wired  you  to 
obtain  records  of  Garah  Bernhardt  if  you  can  get  them, 
hut  I  do  not  think  the  other  artiBts  would  he  suffi¬ 
ciently  popular  o.t  leant  at  the  present  time,  to 
warrant  the  cost. 

On  the  subject  of  Bonci,  I  note  v/hat  you  say, 
and  if  you  are  not  able  to  do  anything  with  him  before 
he  leaves  for  America,  I  will  have  some  one  Bee  him 
here  and  submit  your  proposition.  Of  course,  the 
whole  thing  hinges  on  the  contract  which  he  has  with 
the  Phonotipia  people.  The  more  experience  I  am  hav¬ 
ing  with  the  grand  opera  question,  the  more  I  am  con¬ 
vinced  of  the  fact  that  our  so-called  "friends"  are 
doing  all  they  can  to  side-track  and  embarrass  us,  and 
I  am  not  at  all  surprised  to  have  you  tell  me  that  7<tr. 

HZ  Thomas  Graf,  Esq. 

Dixon  has  nude  Bond  a  very  substantial  offer,  not¬ 
withstanding  the  fact  that  he  told  us  he  would  have 
nothing  whatever  to  do  with  him. 

Bourn  very  truly. 




Kovcmber  1,1909. 

Mr.  Thomas  ®p.  Osborne, 

4  IJonegall  Square  West, 

Belfast,  Ireland. 

l!y  dear  Sir 

Your  favor  of  the  82nd  ult  to  Kr.  kdison 
has  been  referred  to  me,  together  with  the  accompanying 
letter  from  hr.  './.  J.  Maguire .  Mr.  iidiaon  v/ishea  ine  to 
advise  you  that  while  he  thinks  the  suggestion  made  "by 
hr.  Maguire  in  very  interesting  from  a  eoiontif io  point 
of  view,  he  does  not  believe:  that  in  the  present  state 
of  the  art  it  would  V-  ponfiihle  Xu  oaticfactorily  record 
by  means  of  a.  phonograph  the  sounds  produced  by  heart 
beats.  Dr.  Maguire  point  ■  out  that  those  sounds  are  of 
very  low  pitch  and  are  extremely  faint,  and  these  two 
difficulties,  in  Hr.  Kdiaon1 s  opinion,  would  make  it 
practically  impossible  to  record,  then  phonograph! dally . 

Yours  very  truly, 


President . 




Willesden  Junction. 


December  17th  1909 

Frank  L.Dyer,  Esq.  President,  .^oniiqen^iai^ 

National  Phonograph  Company, 

Or  a  n  g  e  ,  N.  J. 

Dear  Mr. Dyer, 

I  cannot  give  you  any  figures  at  this  date,  but  I  feel 
sure  that  the  fiscal  year  1909  will  close  with  quite  satisfactory 
results  as  far  as  this  company  is  concerned,  and  compared  with  previous 

There  is,  however,  one  serious  matter  which  requires  care¬ 
ful  consideration  and  prompt  action,  and  that  is:  the  comparatively 
small  figures  of  our  machine  sales,  if  measured  by  our  sales  during 
the  first  3  years  in  this  country.  True,  the  Fireside  machine  has 
been  a  very  good  seller,  but  on  the  whole  our  machine  sales  are  not 
what  they  should  be,  and  there  are  good  reasons  why  this  is  so.  I 
have  obtained  from  one  factor  exact  figures  of  his  machine  purchases, 
and  while  there  is  not  a  very  great  difference  between  his  purchases 
of  disc  machines  and  our  machines  during  1909,  there  is  a  great  dif¬ 
ference  if  we  consider  that  during  previous  years  his  purchases  of 
our  machines  have  been  far  and  far  in  excess  of  the  disc  machines. 

We  are  at  present  practically  the  only  people  who  sell  cylinder 
machines ;  the  Columbia  Company  do  not  count,-  their  machines  are 
not  seen  anywhere;  and  the  other  cylinder  machine  which  has  been 
popular  in  this  country,  the  Excelsior  phonograph,  is  disappearing. 

P.  Co.,  Ltd. 

Frank  L.Dyer.  Esn: 

December  ,17  th  1909 

The  Excelsior  factory  at  Cologne  manufacture  very  few  cylinder 
machines  hat  concentrate  themselves  on  disc  machines,  and  what  is 
offered  in  this  conntry  by  factor,  is  it  seems  only  the  overstock  of 
Srcelsior  machines  that  was  left  on  their  hand,  fro, 

Against  this  .e  have  quite  a  number  of  firms  all  manufacturing  a  good 
number  of  different  models  of  disc  nmohlnes  with  a  range  of  prices 
downward,  which  cannot  be  met  with  in  the  cylinder  line. 

Eie  danger  lie.  not  so  much  in  the  immediate  loos  of 

machine  sales  but  in  the  fact  that  if  the  increase  in  the  sal.  of 

disc  machines  continues  at  the  present  rate,  we  shall  scon  feel  a 

drop  in  our  record  sales,  end  the  situation  in  future  win  become 

more  and  more  serious,  if  v/e  do  not  „  „ 

,  ii  we  do  not  find  a  remedy  as  quick  as  possible. 

I  am  sending  you  under  separate  cover  a  Turnaphon.  catalogue 
fro,  which  you  will  sec  that  dealer,  are  offered  disc  machine,  at 

SUCH  low 

°  xx/ 5,  approximately  jS2tr, 

6-,  as  against  our  cheapest  machine,  the  Hem,  which  1,  sold  to  dealers 
+  sfa  mui. 

’  "w“>  "“xi-ii  is  soxa  to  deale: 

at  /8.75.  This  is  only  one  mate  of  cheap  disc  machines,  and  similar 
machines  ar.  placsd  on  the  market  by  several,  I  have 
Purchased  several  cheap  machines  of  other  make  than  the, 
which  are  cheaper  than  our  0,„,  but  „f  ouch  appearance  that  it  would 
take  a  great  deal  of  advertising  and  p„s„.,i„n  to  mak,  .  customer 
take  a  Gem  instead  of  this  disc  machine.  I  win  8e„d  y,„  these  ' 

Pies  so  that  you  can  ,e.  for  yourself  the  appearance  of  those  machlh.s 
and  judge  for  yourself  1„  which  direction  business  is  bound  to  drift 
unless  we  do  something  to  meet  the  situation. 

A  remedy  I  see  either  in  our  marketing,  in  addition  to 
cylinder  rscord,  and  machines,  ,  disc  rscord  of  our  own,  ln  dosing 

N.  P.  Co.,  Ltd. 

Dec enter  17th  1909 

Frank  t.Dyer.  Esq: 

low-priced  good  cylinder  machines  as  an  offset  against  cheap  disc 
machines.  The  moral  effect,  of  course,  must  he  considered.  If  those 
cheap  disc  machines  are  distributed,  and  they  are,  in  large  quantities, 
the  disc  purchases,  which  I  think  are  still  in  the  minority  in  this 
country  although  they  are  close  up  to  us,  will  increase  immensely; 
dealers  will  begin  to  feel  the  drift  of  the  business  and  take  less 
and  less  interest  in  the  cylinder  trade,  and  moving  in  the  line  of 
least  resistance  will  stock  what  has  an  increased  demand,  and  neglect 
that  upon  which  a  great  amount  of  labour  must  be  spent  in  selling. 

The  situation  is  more  advanced  here  than  it  is  in  America  owing  to 
the  patent  protection  there,  but  you  will  soon  be  confronted  with  the 
same  problem  when  the  principal  patents  on  disc  machines  have  run  out* 

I  am  today  sending  you  only  the  one  catalogue;  but  as  soon 
as  the  3  sample  machines  which  I  obtained  will  be  shipped  you,  I  will 
write  you  very  fully  regarding  each  of  them.  These  machines  may 
be  criticised  from  a  technical  point  of  view,  but  it  cannot  be  denied 
that  as  far  as  their  appearance  goes  the  advantage  is  all  on  their 
side,  and  this  goes  a  good  way  to  promote  sales. 

With  regard  to  my  first  suggestion:  to  add  discs  to  our 
present  products,  I  do  not  know  if  this  has  been  seriously  considered 
or  if,  how  far  we  have  already  gone.  With  regard  to  the  second  pro¬ 
position  I  should  be  glad  if  you  will  have  taken  this  in  hand  at  once 
and  produce  one  or  two  models  of  cheap  machines,  if  possible,  and 
by  all  means  preferably  machines  with  a  cabinet,  and  a  large 
cabinet;  if  possible,  with  a  variety  of  cabinets,  so  as  to  have  some¬ 
thing  to  offset  the  great  choice  which  people  have  here  in  disc  machines. 

N.  P.  Co..  Ltd. 

December  X7th  1909 

Drank  L.Dver.  Esn: 

— — 3 —  -4  - 

The  business,  at  least  in  this  country,  is  worth  having  and  if  we 
have  the  means  of  placing  on  the  market  large  quantities  of  machines 
through  cheapness  in  price,  we  will  do  an  increased  cylinder  business 
This  will  also  help  us  in  Continental  territories,  where  the  advance 
of  the  disc  machine  is  further  progressed  than  in  this  country. 

I  should  be  very  glad  to  hear  from  you,  at  an  early  date, 
of  your  intentions,  for  my  own  personal  satisfaction. 

xours  very  truly, 

S  a—  SbJXj^ 



National  Phonograph  Company  Records 
Correspondence,  Domestic  (1910) 

This  folder  contains  correspondence  and  other  documents  relating  to  the 
commercial  exploitation  of  phonographs  in  the  United  States.  Most  of  the  items 
are  letters  to  and  from  Frank  L.  Dyer,  president  of  NPCo.  Other  correspondents 
include  Carl  H.  Wilson,  general  manager;  Leonard  C.  McChesney,  manager  of 
the  Advertising  Department;  Leo  H.  Baekeland;  Nelson  Goodyear;  and  William 
M.  Lybrand.  Included  are  letters  pertaining  to  the  manufacture,  distribution,  and 
sale  of  phonographs  and  records,  as  well  as  correspondence  about  litigation, 
patents,  and  other  legal  matters.  Among  the  documents  for  1910  are  letters 
concerning  the  development  of  a  disc  record  and  a  diamond  reproducing  point; 
the  activities  of  the  T  raveling  Department,  a  recently  established  sales  division; 
recordings  made  by  polar  explorer  Ernest  H.  Shackleton;  and  competition  with 
Victor  and  Columbia.  Among  the  items  relating  to  disc  records  are  letters  to  and 
from  Baekeland  about  the  use  of  Bakelite  for  the  records;  and  experimental 
reports  by  Edward  L.  Aiken,  who  was  working  with  Jonas  W.  Aylsworth  on  record 
composition,  surface  wear,  and  machine  tools  for  record  manufacture.  There  is 
also  correspondence  by  Edison  pertaining  to  technical  developments,  corporate 
finances,  and  various  sales  schemes,  along  with  several  undated  memoranda 
by  Edison  at  the  end  of  the  folder.  Some  of  Dyer’s  letters  refer  to  the  business 
of  other  Edison  companies  such  as  the  Edison  Storage  Battery  Co.  and  the 
Edison  Portland  Cement  Co. ,  as  well  as  the  proposed  consolidation  of  Edison’s 
interests  and  the  use  of  the  name  "Thomas  A.  Edison,  Incorporated." 

Approximately  1 0  percent  of  the  documents  have  been  selected,  including 
samples  of  daily  and  weekly  sales  reports  that  were  routed  to  Edison.  Aiken's 
reports  to  Dyer  on  record  composition  have  not  been  selected  where  selected 
letters  from  Dyer  to  Edison  treat  the  same  matters.  Also  among  the  unselected 
items  is  an  advertising  plan  prepared  bythe  J.  Walter  Thompson  agency  that  was 
never  adopted. 

9nl;n  A.  Slimttpmut 
35  Stull  Slrrrl 
Jfnn  TJurlt 

F.  L.  Dyer,  Esq. 

#10  Fifth  Avenue, 

New  York  City. 

Dear  Mr.  Dyei':- 

January  5th,  1910. 

„  _  ,  iuur  3avox  received.  I  still  think  we  can 

" ethics tllat  WOuld  b®  fair  a3ld  ecluitable  and  on  the 
T  a:  !'I  basi®  t0  which  Y°u  have  referred  in  a  previous  letter, 
rarilv  LL  h  Wf!>h  “***  ThompBon  in  some  otters  and  am  tempo- 
in  this  matter.*2  ^  Same  offlces  a3ld  am  interested  as  his  friend 

V,hen  younG  Tom  Bdr.^in^J^ 

sponded  up  to  several  thousand  dollars.  * 

of  Mr  mi.  loaned  H?l7'ei'  the  on  the  strength 

havf  T  aS  preSideUt  of  the  00niPany  and  because  you 

shire  the  iso  8  representative,  taken  from  him  at  $3.25  a 

shaie  the  280  shares  0f  Phonograph  stock.  Mi’.  T.  needs  thi-* 

way6!/!!  i^lttlr  r^0"”8  18  t0  “***  Kdison»  not  in  a33  aggressive 
Iuit°  t0  be  pui'sued  in  the  courts  even  in  a  friendly 

.  ?  hava  310  d°uh*  that  if  I  could  see  Mr.  Edison 

to  tlkful  he  would  in  his  generosity  contribute  at  least  $500 

him  o?thr  th,1S  3t°?^  1  Wam  to  make  this  proposition  to 

him  or  through  you  if  y0u  prefer. 

uniust  iud«,  of  +l°\mst  excuse  Pres  latency  such  as  even  the 
othlr  cIlS  f  hS  S°rip1:ure  yielded#**  as  employed  in  the 
othei  case  case  we  worked  so  harmoniously. 

I  will  Dhono  un  feed  oblieed  to  "continue"  the  correspondence. 

Iully  *”d  *'"**«•  «■»  ■» 



Two  suggestions  made  this  morning  by  Mr.  Edison  to  he 
more  fully  looked  into  later. 

(1)  ■  .Regarding  the  Purchasing  Departments  of  largo  corpora¬ 
tions,  great  opportunities  are  offered  for  dishonesty  and 
favoritism,  and  equal  opportunities  for  ineffective  and 
uneconomical  buying.  He  proposed  the  carrying  on  of  &  bus¬ 
iness  which  would  correct  and  check  all  purchases,  by  having 
a  numbor  of  corporations  pay  a  yearly  retainer,  which  would 
entitle  them  to  have  all  purchases  corroborated  and  approved. 
This  might  be  done  through  a  separate  company  or  through 
regular  chartered  accountants.  The  business  v/ould  boar  the 
same  relation  to  the  Purchasing  Department  tha"  the  business 
of  a  chartered  accountant  now  bears  to  the  Book-keeping 
Department  of  a  corporation.  The  idea  would  bo  that  the 
company  doing  the  business  should  be  furnished  With  samples 
and  specifications  of  all  supplies  and  with  copies  of  all 
orders  over  anO  above  a  certain  amount,  and  should  make  a 
separate  investigation  to  determine  whether  the  prices  ob¬ 
tained  are  reasonable.  If  a  business  of  this  sort  could  be 
developed,  manufacturers  of  raw  material  would  no  doubt 
co-operate  to  oarry  it  into  effect  by  furnishing  their  own 
prices,  becavise  it  would  bo  to  thoir  interest  to  have  pur¬ 
chasing  conducted  along  honost  lines.  Take  this  up  with 
lybrand  or  possibly  Harry  Mingle  to  see  if  anything  can  be 
worked  out  of  it. 

(2)  The  idea  of  trying  to  get  moving  pictures  intro¬ 
duced  into  higher  social  circles  by  soliciting  subscriptions 
for  a  continuous  moving  picture  exhibition  which  could  be 


carried  on  in  a  club  hall.  For  instance,  if  one  thousand 
people  in  Montclair  would  subscribe  50  cents  a  week,  a  very 
good  moving  picture  show  could  be  given  at  the  Montclair  Clair 
Club  hall  throe  times  a  week  and  peoplo  could  drop  in  at  any 
time  they  wantod  to.  Take  this  up  with  Kirk  Brown  and  sug¬ 
gest  to  him  that  a  committee  might  bo  formed  to  go  over  to 
the  laboratory  to  see  the  kind  of  pictures  tlio  manufacturers 
are  now  putting  out. 


F.  1.  D. 




in  mattoro  of  this  nort-  '  V  thont  oposfcinG  for  ourso’vos  in  nay 
troy,  there  coonc  to  ho  a  very  Croat  opportunity  on  tho  part  of 
uurchacinG  Dopartnontc  to  mafco  nictalsoa  in  tho  purohnoo  of  cup-plica 
and  not  to  $o  in  tho  ohcapoct  narlncts,  and  a  firm  or  company  nrT:- 
1HG  a  cpocialty  of  this  v;or3r  miGht  ho  hip  to  cavo  rainy  tines  tho 
cost  of  tho  annual  corvico  to  tho  corporation. 

;.ty  ourposc  in  vffitinc  you  to-day  roenrdinG  this  natter 
i.c  not  necessarily  to  asl:  you  to  tai:c  it  Up  for  us  hut  merely  to 
Get  your  opinion  >.r  to  its  practicahility  so  that  I  c  n  diocm-s  it 
uith  Edison  should  lie  :  j  £  .fee  sucyestion  to  no  £  in.  I 
will  ho  very  much  ohli&od  if  you  will  yivo  tho  natter  your  c;. re¬ 
fill  connidoration  and  a.dvisc  nfc’-  of  your  opinion  on  the  sane. 

"ours  very  truly, 

r:,i)/iv;v;  'rosidont. 



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Jan.  20, 


Mr.  17.  c.  Hntohlnaon, 

Corner  Forest  ,'c  Charles  Sts., 

Jacksonville,  pia. 

My  dear  Sir; 

Your  letter  to  Mr.  Edison  has  been  personally 
roforrod  to  no,  with  the  request  that.  I  look  into  tho 
various  natters  that  you  complain  of.  We  are  always  glad 
to  receive  the  benefit  of  straightforv  arfi  criticism,  and 
to  profit  by  it  whenever  possible. 

I  agree  v.ith  you  absolutely  that  all  records 
should  leave  our  Factory  in  a  perfect  condition,  and  v:e 
make  every  effort  to  bring  this  result  about  by  having  tho 
records  inspected  during  their  entire  manufacture.  More¬ 
over,  v/henover  a  dealer  reports  to  us  the  rocoipt  of  a  de¬ 
fective  record,  v;e  always  make  it  good.  Regarding  tho  rough¬ 
ness  that  you  have  encountered  in  some  records,  this  is  a 
defect  which  sometimes  occurs,  by  reason  of  the  quality  of 
the  matoriul  which  we  are  required  to  use. 

Yotu-  suggestion  that  records  should  be  placed 
in  scaled  packages,  and  tho  seals  not  be  broken  until 
actually  purchased,  is  one  that  wo  have  frequently  considered. 

Page  2, 

Mr.  H.  c.  Hutchinson, 
Jan.  20,  1910. 

hiit  wo  hollo va  it  could  not  he  possibly  oarriod  out. 

Aa  you  would  then  booomo  necessary  for  every  doal- 
er  to  carry  in  stock  a  lino  of  samplos,  which  ho  could 
play  to  his  customers,  Sinco  wo  issue  40  different  records 
each  month,  and  have  ovor  10,000  dealers  on  our  list,  you 
will  ooo  that  this  would  require  ovor  400,000  records  each 
month  for  samples  alone.  Unless  the  doalor  had  samplos, 
it  v.ould  ho  impossible  to  sell  n  record  after  the  soal  had 
become  broken,  and  a  oustomor  would  naturally  decline  to 
bi;y  u  record  until  ho  had  heard  it. 

What  you  say  regarding  tho  handling  of  records 
in  dealers'  stores  by  people  who  hang  around  tit©  place,  is 
a  difficulty  that  has  not  heretofore  boon  brought  to  my 
attention,  but  obviously  it  is  a  matter  for  the  dealer  himself 
to  correct.  He  must  see  that  if  he  permits  his.  friends  to 
handle  his  stock,  he  cannot  make  as  much  of  a  success  of  the 
business,  as  if  the  stock  is  absolutely  unused.  Possibly  the 
records  you  complain  of  may  be  of  this  character,  and  may 
have  boon  played  ovor  and  ovor  again  by  the  dealer  before  you 
purchased  them.  At  any  rate,  1  am  sending  you  by  express  tho 
7  records  you  refer  to,  which  1  will  ask  you  to  accept  with 
my  compliments,  and  I  hopo  you  will  find  those  bottor  than  the 

Page  3, 

Ur.  II,  c.  Hutchinson, 
Jan.  30,  1910. 

onoo  yo;i  have. 

Thanking  you  for  your  suggestions  and 
critic isms,  and  assuring  you  that  it  is  all  accepted 
in  the  boot  spirit,  boliovo  mo, 

Tours  very  truly, 






Ivlr.  V/alkor; 

In  tills  letter  from  IT.  0.  Hutchinson  of  Jackson¬ 
ville,  you  see  he  refers  to  7  records.  I  wish  you  v.-ould 
look  up  those  records  end  heve  Ur,  Youmons  send  them  to  him, 




7  -the  following  rooordc  to 

.  Hutchinson, 

Hutchinson  Bros.  Co., 

Pol'OSt  OhflVloS  21*0.  . 
Jaclraonvillc ,  : 





Shoco  tiro  to  ilofootivc  rooords  ■  nu.  should  go 
ohr.rgo ,  in  aocordcmoo  with  lottor  written  M&  to-day. 

Hooting  of  Jan.  IS,  19X0,  tho  possibility  you  re for  to  was  suite  fully 
aiscussod.  !Bhe  proposition  applies  to  only  two  or  three  salesmen 
at  tho  most,  because  this  particular  difficulty  has  only  boon  enouunted 
in  tho  northwest.  ITo  doalor  would  havo  more  than  two  or  throe  or 
possibly  a  half  dozen  of  those  pitted  records,  and  we  felt  that  it  would 
be  a  hardship  on  the  dealer  to  require  him  to  return  such  a  few  records 
to  the  jobber  and  pay  express  charges  thereon.  If  a  salesman  calls 
on  a  doalor  and  finds  that  tho  doalor  has  two  or  three  pitted  records, 
the  proposition  was  to  permit  the  salesman  to  give  the  doaler  a  credit 


momorandum  entitling  him  to  an  equivalent  number  of  records  ordered 
from  the  jobber.  later  on  when  the  dealer  returns  his  records  under 
tho  Exchange  Proposition  these  pitted  records  could  also  be  returned 
so  that  the  Jobber  would  be  able  to  check  up  the  transaction.  In 
this  respect  the  minutes  as  written  out  are  not  quite  as  we  agreed 
upon  at  the  meeting. 

The  final  idea  a3  I  recall  it  was  not  to  permit  the 
salesmen  to  break  up  the  pitted  records,  but  to  simply  allow  him  to 
give  the  dealer  a  credit  and  require  the  dealer  later  on  to  return 
the  pitted  records  to  the  Jobber  with  his  other  records  under  the 
Exchange  Proposition,  so  that  the  whole  transaction  would  be  known 
both  to  the  Jobber  and  ourselves. 

By  permitting  the  salesman  to  do  this,  a  dealer  having 
a  number  of  pitted  records  in  his  stock  could  got  new  records  to 
replace  them  without  going  to  the  trouble  and  expense  of  returning 
the  pitted  records  to  the  jobber  and  without  having  to  wait  until 
his  other  records  wore  returned  under  our  Exchange  Proposition. 



H.  ?.  I. •!  11  or:  l/5l/l0. 

Hr.  Byor  haa  inotructcd  mo  to  return  to  you 
all  the  oorroapondonoo  in  roforonoc  to  tho  purohaao  of  the 
Edicon  Phonograph  V/orka  atock  from  tho  International  Graphophono 
Co.,  conaiating  of  oorroapondonoo  v/ith  1'ranoia  Pitch,  Ilorbort 
Barry  and  Ilohort  H.  He Cart or.  V/ith  this  oorroapondonoo  ia 
a  lottor  rocoivod  from  Eohort  H.  MoCartor  Saturday  morning 
v/ith  copy  of  letter  from  Caldv/oll  f3  Hood  to  him  aa  to  proper 
title  to  thia  at 00k. 


-  •  W.  T/alkor. 



fA,  L L-(,<-rr^ 


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/  ■  r 

•(  — T-*<-  k-cC  <r( 

III  L-^  <■  ■— ' 


.  .CL't.  t 

(.<4-^  !> 





. . , ,  CL 

TIC,-  L  vy-  [. 


iT.  G-* 

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Newark,  N.  J.  December  30,  1903. 

'Mr.  Vf.  E.  Gilmore, 

Edison  Phonograph  Works, 

Orange,  N.  J. 

Dear  Sir: 

Yours  of  the  29th  instant  with  enolosi! 
national  Graphaphone  Company  at  hand.  I  see  no  objection  to  the  trans¬ 
fer  of  the  stock.  I  have  examined  the  agreement  as  to  the  election 
of  directors,  and  do  not  believe  it  can  be  enforced.  Perhaps  it  would 
be  well  to  take  the  matter  up  in  a  friendly  way  with  these  gentlemen, 
and  Bee  whether  persons  agreeable  to  Mr.  Edison  cannot  be  suggested  to 
take  the  vacant  places  in  your  Board  of  Directors.  What  do  you  think 
of  this  suggestion? 

Yours  truly,_  .. 


V.,  Fo-b.  5, 1910.. 

Feb.  8,  1910. 

Subject:  Bakelite. 

Mr.  Frank  b.  Dyer,  Pres., 

■National  Phonograph  Co., 
Orange,  N.  J. 

Dear  Sir:- 

I  shall  be  very  glad  to  meet  you  at  some  future  time. 
The  main  reason  why  I  would  ask  you  to  post-pone  this  subject, 
is  that  I  am  putting  the  finishing  touches  on  my  experiments 
relative  to  the  utilization  of  Bakelite  for  phonographis  records. 
After  I  feel  sure  that  l  have  gone  as  far  as  is  desirable  in  my 
experiments,  1  shall  let  you  know. 

Mr.  Frank  L.  Dyer,  President, 

Nations  1  Phonograph  Co., 

Orange ,  IT .  J . 

My  dear  Mr.  Dyer: 

.  you  no  doubt  have  seen  the  recent  articles  - 
especially  that  in  the  "Hew-  Y°rk  American"  of  Sunday, 
January  30th  - 

"Phonographic  fad  on  the  wane  -  makers  cannot 
pay  dividends" 

all  referring  to  Mr.  Edison's  recent  purchase  of 
Talking  Machine  stock. 

It  strikes  us  that  if  you  have  not  already 
decided  to  do  so,  that  it  would  be  very  advisable 
for  you  to  put  out  an  article  to  undo  the  damage  which 
such  articles  may  do  the  Talking  Machine  industry,  for, 
going  undisputed,  it  cannot  help  but  have  a  damaging 
effect  upon  the  minds  of  the  trade  as  well  as  to  ground 
the  opinion  of  those  of  the  public  who  have  had  the 
"fad"  idea  of  the  Phonograph. 

Hope  you  will  not  consider  me  too 


Yours  very  respectfully, 



General  Manager. 

Feb.  4,  1910, 

Ur.  Louis  F.  Oeissler,  Oonoral  Manager, 

Victor  Walking  Machine  Co., 

Cam  cion,  II.  J. 

My  dear  Mr.  Coins lor: 

Your  i'avor  of  the  3rd  inot.  has  boon 
roeoivod.  When  tho  artioloo  to  which  yon  refer  wore  pub¬ 
lished  I  made  roplios  to  then,  which  I  think  will  straighten 
out  the' situation.  Who  trade  Papers  also  have  boon  furnished  • 
with  statements  fully  euplainirg  the  matter.  You  understand, 
of  courso,  that  in  buying  a  minority  stock  intorest  that 
was  more  or  los's  hostile,  and  confronted  as  J.  was  with  the 
practical  impossibility  of  showing  them  our  books,  that  I  had 
to  do  moro  or  loss  talking  along  these  linos. 

If  I  had  not  done  so,  we  would  not  have 
been  able  to  buy  the  stock  at  any  price,  and  would  have  beon 
subjected  to  annoying  and  harassing  law  suits.  I  am  very  glad 
to  have  you  write  me  about  this  matter,  but  1  think  it  has 
been  taken  care  of. 

Yours  very  truly. 


FID:  Mil 


Fob.  4, 


®r*  1.  K.  Baekeland, 

Yonkers,  K.  Y. 

Dear  Sir: 

Your  favor  of  the  3rd.  lust,  has  boon  roceivod. 

I  v/iii  bo  very  ranch  interested  in  hearing  how  yonr  experiments 
turn  out.  and  wo  will  expect  to  hear  frora  yon  in  dne  course, 
m  order  that  wo  may  have  a  oonforonco.  %  principal 
anxiety  in  Getting  in  tonch  with  yon  was  to  try  to  make  some 
arrangement  with  yon  if  poesiblo  before  going  to  any  other 
talking  machine  concern.  1  imagine  from  yonr  letter  that  yon 
hove  not  as  yet  taken  np  this  matter  with  any  other  Phonograph 
Company,  and  I  hopo  yon  will  not  do  so  nntil  wo  have  had 
the  opportunity  of  talking  it  over. 

Your3  very  truly. 






A  newspaper  item,  which  has  been  widely  oonied 
appeared  recently  in  a  number  of  New  York  City  newsnaoers 
regarding  the  sale  of  a  block  of  stock  of  one  of  the 

*■  «>•  • 

T,hif  article  we  believe  has  been  misconstrued, 
Prpr.,?rtL+°r$  +?jUr'p  t0  the  Phonograph  industry,  and  the 
President  of  this  company  has  therefore  prepared  a  state- 

cation?  ^  W°Uld  likS  y°U  t0  SiTS  Space  in  °onr  SSlS- 

_  ,  .  thanking  you  in  advance  for  any  courtesy  you 

extend  to  this  Company,  we  are, 

Yours  very  truly, 


Manager  Advertising  Department. 



My  attention  hag  been  called,  to  a  recent  article  in  a 
New  York  daily  newspaper  which  has  been  widely  copied,  and  wherein 
it  stated  that  the  future  of  the  phonograph  was  not  very  bright. 

This  article  is  entirely  misleading  and  does  not  accord  in  any  way 
with  the  views  of  myself  or  anyone  connected  with  the  Edison  Companies. 
The  future  of  the  phonograph  was  never  so  bright  as  at  the  present 
time;  in  fact  I  feel  that  the  surface  has  hardly  been  scratched. 

Orders  are  coming  in  so  rapidly  at  the  present  time  that  we  are  not 
able  to  fill  them  promptly  and  the  sales  are  entirely  satisfactory. 

The  fact  that  we  are  just  starting  in  with  the  amberola  and  a  full 
line  of  Grand  Opera  Records  is  certainly  an  indication  that  so  far 
as  we  are  concerned  the  future  does  not  have  to  be  questioned.  If 
any  one  of  us  had  the  slightest  doubt  as  to  the  future  of  the 
business,  why  should  we  be  spending  hundreds  of  thousands  of  dollars 
each  year  in  advertising  and  a  corresponding  amount  in  the  develop¬ 
ment  of  new  lines  and  in  experimental  work? 

In  connection  with  the  very  article  under  consideration,  it 
is  interesting  to  inquire  why,  if  Mr.  Edison  has  any  doubt  as  to  the 
future  of  the  business,  he  should  be  willing  to  spend  $155,000.00  in 
cash  to  acquire  a  minority  stock  interest?  The  whole  transaction 
was  simply  this,  that  in  the  early  days  of  the  phonograph  business 
this  particular  minority  block  of  stock  of  the  Edison  Phonograph 
Works  was  acquired  by  outside  interest,  and  was  later  put  up  as 
collateral  to  secure  the  issue  of  bonds  of  another  independent 
company  (not  controlled  by  Mr.  Edison)  having  rights  in  certain 



foreign  countries,  and  on  which,  the  interest  payments  were  defaulted. 
These  bondholders  were  anxious  to  realize  something  from  their  invest¬ 
ment  and  Mr.  Edison  was  willing  to  buy  the  stock,  so  that  the  irans- 
action  was  consummated. 

The  Edison  Phonograph  Y/orks,  as  persons  familiar  v/ith  the 
business  know,  is  a  separate  company  located  at  Orange  and  engaged 
only  in  the  manufacture  of  machines,  which  are  turned  over  to  and  are 
distributed  by  the  national  Phonograph  Company.  The  National  Company 
manufactures  all  Edison  records  and  sells  directly  to  the  trade.  The 
National  Company  in  assets,  property  and  amount  of  business  done  iB 
immeasurably  larger  than  Edison  Phonograph  Works. 

The  purchase  of  this  block  of  stock  by  Mr.  Edison  was  a 
personal  matter  and  has  no  direct  bearing  on  the  future  of  the  phono¬ 
graph  business,  other  than  showing  his  confidence  and  a  desire  to 
withdraw  the  stock  from  litigation. 

s/ll/ 10. 

2.  A.  EG icon. 


Busnn-is/j  phoitoc-ha'us 

Unfilled  orders 
Orders  received 




?■  incniii::s  &  meok/uisms 

Ordorc  sh.ippod 
orders  unfilled 
Orders  received 

Orders  shipnod 
Unfilled  ordorc 
Orders  received 

Ordorc  shipped 
Unfilled  orders 
Orders  receive  c: 

Orders  shipped 
Unfilled  orders 
Orders  rocoivod 

Orders  sh.ippod 
Unfillod  orders 
Orders  received 


24,135  122,511 
7 ,750  1.1,005 
10,310  122, 57 C 

Edison  fiasco 




401  '  1516 

7G5S  4540 

2557  397 

ITUI-Lphi-VIliG  :IA0UI1P;2 
iVisard  Bates 

16  102 

■  1  29 

151, GOG 

27  7 G  ■ 










Hoforrinc  to  the  falling  off  in  film  orders,  this  is  aocoxmtod 
for  hy  tho  canoollation  of  foroign  standing  orders  and  no  foreign  ro- 



poat  orders,  'because  films  are  now  being  printed  by  tho  Grvunont 
in  Verio  for  our  foroign  custonoro.  Domestic  orders  h  vc  not 

off,  but  have  incroaood,  as  the  total  sold  for  tlio  rook  ending 
20t3i  ran  140  rools,  and  the  total  for  tlso  wool:  ending  fobruory 
was  144  roolo,  shoring  an  increase  of  four  reels.  Our  foroign 
3iavc  boon  riur.ring  Iron  36,000  to  £30,000  foot  por  wools:. 







i’S  very 


Peter  Eacigalupi  &  Sons, 

941  Farkct  Street, 

San  Francisco,  Ceil. 


,  Koplying  to  your  several  letters  of  the  past  few  v/eelsa. 

??  l0  lJ?eart'  poll3ner>  Wtilips  arid  the  writer,  I  regret  to 
cohalLr^in«f^r^h0  Mfit°areful  and  deliberate  discussion  and 
quo3tio?  "f  extending  you  additional  credit, 

It  Iiae  keen  decided  vro  cannot  do  so.  1  trust  you  will  not  con • 
oit'+L+tlT+<1<Cl3i?n  in  !hi?  mutter  aa  arbitrary  or  narrowminded, 

ia  aot  ou^  desire  t0  extend  to  you  every  possible  favor 
wltJl  a  3afe  and  conservative  business  policy,  as  ouch 
is  not  the  case.  You  are  now,  end  always  have  been,  allowed  a 
andTin^nP  orodit  than  any  other  jobber,  where  Jonditlons 

anci  financial  responsibility  v/ere  the  sarao# 

ati  di3a?ter>  your  credit  was  limited  to  j^lB.OOO.and 

nil  ^  amount  v/aB  not  only  satisfactory  to  you,  bu£  wae 

figured  you  would  require.  Later  on  it  was  extended  to 
to’p^nnn  y°U  Wef°  here  last  auMmer»  it  was  again  increased 

Xnn’000*  ’  lind?r  a?eclal  arrangement,  whereby  the  additional 

i  J°  l5®  liquidated  at  the  rate  of  $500.  per  month,  This 
itself  was  a  conoasslon  never  allowed  any  other 
1^000*  that  tln?/ou  felt  very  sure  that  with  the  additional 

Yn'^00!*  oredit»  yau  would,  in  a  few  months,  be  able  to  turn  yourself 
the 8 ^1  ft  nnnayT?°H  +  ° P° 3 it ion  to  keep  your  account  within 
+ivnVpSi°°p^  aad  a1;  the  same  time  obtain  sufficient  goods  to 

toko  care  of  your  business.  The  $5,000.  you  are  liouidatinr  as 

1>Ut  Wit^  tlirce  months  after  it  m  grant ed*you, you  were  '■ 
in  tte  same  position  as  before,  and  ever  since  then  you  have  not 

S  soliciting  additional  credit,  but  I  honestly  believe' have 
money  in  your  business  by  not  being  able  to  socure 
raerchandlso  enough  to  take  care  of  your  trade.  X  don't  mean  by 
this  that,  wo  have  hand! capped  you  by  being  compelled  to  hold  un 

r°r/?iy  ®reat  length  of  time,  but  that  knowing  you*  had 
y?.ur  or0dlt,  you  have  not  plaood  orders  for 
the  quantity  of  Roods  that  you  should  have  had# 

'  I.1  d?nH  u  nea®3aary  to  go  into  this  matter  in  detail, 

and^ «ln  ?ri80®»  J  over  it  very  thoroughly  with  you, 

time-  you  admitted  you  were  not  only  making  no  money, 
cmnd  a°T  aveiy  monthi  a»d  that  unless  a  change 

could  be  effected  in  the  way  of  forming  a  combination,  or  you 

could  obtain  additional  crodit  from  us,  you  would  bo  far  better 
off  by  closing  out  your  business  to  the  best  possible  advantage. 

I  told  you  then- that  so  far  as  I  could  see,  additional  credit  was 
out  of  the  question,  and  now  that  the  proposed  combination  has 
fallen  through,  so  far  as  you  are  concerned,  I  do  not  see  that 
there  is  left  for  you  to  do  but  to  try  and  dispose  of  your  business 
to  someone  who  has  sufficient  capital  to  carry  it  on,  and  I  honestly 
believe  that  the  sooner  this  is  done,  the  better  it  will  be  for 
all  concerned. 

An  oxtra  three,  five  or  ton  thousand  dollars  in  your  business, 
which  wo  night  plaoo  there  in  the  way  of  additional  credit,  or 
which  you  night  arrange  to  borrow,  would  not,  in  my  opinion,  help 
you  one  bit,  for  the  reason  that  within  six  months  or  a  year,  at 
the  latest,  after  receiving  this  additional  crodit  or  money,  you 
would  again  be  in  the  same  position  that  you  are  now,  Pommer  and  out  of  all  consideration, in  the  me!, tor, 

I  don't  know  who  to  suggest  as  a  possible  purchaser  of  your  business, 
or  as  being  liable  to  arrange  a  combination  with  you,  but  wo  are 
now  endeavoring  to  interest  one  of  two  or  three  different  parties 
in  the  way  of  forming  a  combination  with  you,  or  buying  you  out, 
and  believe  we  will  know  definitely  in  the  natter  >i thin  the  next 
month  or  six  weeks.  Possibly  one  or  more  of  those  parties  will 
approach  you,  referring  to  our  talks  or  letters  to  them  for  doing 
so.  Should  sucli  bo  the  case,  we  trust  you  will  not  discourage  the 
idea,  but,  instead,  explain  conditions  which  causes  you  to  desire 
to  make  a  change,  and  place  the  prospects  and  possibilities  before 
thorn  in  the  most  favorable  manner  possible.  Should  you  not  be 
approehhdd,  to  would  prefer  your  not  taking  the  matter  up  with 
anyone  until  you  hoar  further  from  us.  Our  only  object  in  making 
this  request  is,  we  believe  we  are  p crimp a  in  a  better  position 
than  you  are  to  interest  someone. 

The  elimination  of  the  Kohler  £:  Cliase  interests  in  our  line 
should  mean  that  tho  business  which  thoy  hod  will  how  bo  divided 
between  the  two  remaining  jobbers.  Tills  fact  should  have  some 
weight  in  getting  someone  interested  in  becoming  your  successor 
or  joining  issuo  with  you. •  On  the  other  hand,  it  also  means  that 
in  order  for  you  alone  to  secure  any  of  the  K.  &  0.  business,  you 
would  have  to  have  more  goods,  and  be  in  better  shape  to  take 
cars  of  your  customers,  and  tliat  would  mean  additional  credit, 
which  cannot  be  granted. 

I  don't  think  there  is  need  of  going  into  tills  matter  any 
further,  as  v/hen  in  Prisoo,  I  explained  to  you  personally  just 
how  wo  felt,  what  the  prospects  7?ere  of  your  being  able  to  con¬ 
tinue  alone  was  from  my  point  of  vlow,  and  tho  conferences  which 
we  have  hold  during  the  past'  two  or  three  weeks,  sinmly  confirm 
tho  views  I  expressed  to  you  at  that  time;  therefore*,  in  conclu¬ 
sion  X  con  only  add,  ub  I  explained  to  you  personally,  that  for 
the  host  interests  and  protection  of  not  only  ourselves  but  for  you, 
a  change  is  absolutely  necessary,  and  the  longer  it  is  put  off, 
the  worse  it  will  be. 

Yours  very  truly, 

General  Manager, 

P.5.  Your  present  account  with  us  is  §22,500,  of  which  §3,900.  is 

notes,  leaving  u  balance  on  oonoigmiont  and  regular  account  of 
:'18,£00,  and  no  tluvfc-  is  0600.  over  the  limit.,  ur.  Philips  wired 
you  on  the  10th  inat.  that  April  records  were  ready  f or  shipment, 
and  it  v/ould  ho  neooosary  for  you  to  forward  fcl,500.  "before  they 
could  he  released.  Slain  sirply  shows  you  the  conditions  under 
which  you  are  labor  inn  at  present,  and-  should  convince  you  of  tho 
importance  of  doing  something  and  doing  it  quick. 


C,K*  '*  r:  Fab.  If),  3.910. 

A.  TUobook'aoho  J’ontnn-’iJorko , 

AY  t  j.  on-C'c  a « II  s  oluif t , 

rrt'.lli:  a  finale,  Germany. 


Owing  to  the  .poor  quality,  so  far  as  our  uoo  is  con¬ 
cerned  ,  of  ..bout  on«-half  of  Uia  men tan  wax  shipped  by  you,  during 
Ttooomboi'  and  January,  u<»  just-  boon  oompol3*  d  t«  cable  you 
an  follow: 

"Kofcu  no  further  shipments  of  v/ax  similar  to  bugs  C524  to 
6693 1  and  fl(>34  to  7023  and  1  to  144,  as  it  in  the  worst  ever 
received,  and  not  sane  quality  »u»  originally  supplied,  (>r  of 
other  bagB  contained  in  crane  shipments..  Presume  shipments  of 
January  2«nd  and  January  29th,  also  contain  acme  of  this  poor 
Material,  v/hioh  will  p iv<;  uo  snore  than  con  possibly  use,  therefore, 
should  furthur  shipment a  earn  quality  bo  mads,  we  will  have  to 
return  than.  Letter  f  ollov/B.8 

Vo  trout  thio  coble  v/ao  fully  understood,  and  that  after  its 
receipt,  you  have  not,  or  will  not,  make  any  further  shipments  of 
srfut  of  the  ocmo  quality  aa  contained  in  the  bags  umbers  referred 
to.  Should  you  do  no,  wo  Bhall  bo  - compelled  to  absolutely  re time 
to  accept  it,  and.  will  return  it  at  your  expense* 

V?o  have  letters  on  file  from  both  you  oral  our  'Ur.  ernf,  he 
having  obtained  tho  info  mat.  ion  from  you,  wherein  promises  arc 
node  that  beginning  Pee.  1909,  all  montan  wax  shipped  uo 
would  bo  of  the  anno  quality  as  originally 'supplied  uo  sample 
shipment  in  1900,  and  no  these  promises -have  not  been  kept,  wo 
now  fool  fully  juutlfied  in  absolutely  refusing,  unless  tho  tine 
should  arrive  when  t*  can  find  a  way  to  uoo  tho  poorer  material , 
to  accept  any  more  of  it  what ever. 

I  will  go  enter  the  shipments  in  wliich  the  poor  material 
waa  included,  ao  complained  of  in  our  cable cram,  and  designate 
the  different  qudl  itiea  of  material  contained  in  each  shipment, 
ao  /rood,  bad  ami  vory  bad.  That  designated  as  flood,  iu  such  no 
wo  conoid or  of  the  same  quality  as  originally  supplied.  The  bad 
is  of  a  poorer  quality,  tut  can  be  used  by  nixing  it  with  a 
certain  percentage  of  the  good,  and  the  very  bad  ia  auoh  as  wo 
have  not  yet  found  a  7/ay  to  uao,  oven  by  mixing  it  with  a  very 
largo  percentage  of  the  good. 

Shipment  covered  by  invoice  of  hoc.  25th,  1909: 

Good  material,  bagB  0164  to  C403 

3Jad  material,  bags  6404  to  6523 



Very  bad  material,  baga  6524  to  6503, 

Shipment  covered  by  invoice  of  fee,  .29,  1009; 

Good  material,  bags  6394  to  6633 
Very  bad  material,  bags  6C34  to  7023. 

StefP-mmt  covered  by  invoice  of  Jan.  12,  IDiOj 
Oood  material,  bags  70: ’.4  to  7167 
Very  bad  "  "  1  to  144, 

tthipmont  covered  by  Invoice  of  3a a.  22nd: 

Very  bad  .materiel,  bags. 145  to  ZM 
Coed  material,  bags  269  to  303. 

Shipment  covered  by  Invoice  of  Jan.  29th,  1910;  bnga  504  to 
268,  has  not  yet  boon  received,  but  fvm.  other  uStipaionta  mentioned, 
vra  have  every  roaaori  to  believe  it  will  be  about  ona-holf  rood 
and  ono-half  very  bud. 

if  you  rude  usy  shipment  uubuofiuuut  to  Jan.  2 J til ,  L-r.iC  orior 
to  receipt  of  our  cable,  v.o  yroouno  it  will  also  ho  part  good 
and  part  very  bud.  The  qw.lity  of  the  material  received  'in  these 
different  sliirsaonta  will,  at  you  can  obuervo ,  overload  ua  to  such 
fth  extent  •.? i  th  ouch  largo  pcrcuiitngc  of  the  poor  materiel ,  eon- 
pared  with  r.'m  snail  percentage  of  good  mat  writs!,  that  wo  will 
not  Juivo  a  cuff  icier.!;  quantity  of  the  good.  mate  rial  to  ml;:  in  o.rid 
uso  Ute  poor  materiel  up. 

of  our  being  u'.nblo  to  obtai: 
during  tise  punt  two  or  titree 
other  sources  of  supply,  and 

to  your  good  qualify,  is  so  : 
hnvu  boon  fumiaiiinc,  that  v,-< 
advantage ,  and  we,  tljorofcrc. 
contract,  you  will  be  able  t< 
ardor  to  prevent  our  being  oi 
add  it  tonal  aiippll  us. 

f  affair u  wjd  the  sou King  impossibility 
n  a  good  material  from, you, '.tmohavu, 
nontJia,  boon  compelled  to  lock  up 
have  purchased  tiusrufrun,  ncvercl 
bile  porhapo  not  ctpial  for  our  purpose 
much  bettor  than  the  bad  quality  you 
o  are  able  to  uuo  it  to  a  much  bettor 
,  hope  that  on  !.h.*  remainder  of  our 
o  supply  uu  with  a  good  material,  in 
03,51  died  to  go  outside  a, gain  for 

Tie  would  like  very  much  to  bd&bj.out®  toll  you  Just  where 
the  trouble  lieu,  and  vlmt  the  difference  in  between  your  good 
and  bad  naterid,  but  an  the  difference  only  shows  up  through 
actual  touts,  it  in  perhaps  ir»pooeible  to  do  00.  Our  chief 
Chemist  advisee,  however,  that  no  for  ao  ho  can  determine — in 
fact  your  teat  sheets  ohov;  thin  to  bo  the  cnee,  the  good  material 
all  run  3  m  .Molting  point  63.6  degr-.-oa  or  higher,  -.die  re  as  the 
bad  materiel  rune  C3  degree a  and  lover,  arid  that  the  other  values, 
acid,  other,  saponification,  etc.,  ura  in  the  caoo  of  the  good 
material  low,  and  of  the  bad  natoriel  high.  V.o  3iavc  also  ob¬ 
served  tJiat  in  ever y  Shirmuut  mentioned,  the  good  material  was 
cental nod  in  baga  marked  by  certain  letters,  and  acwod  up  in  a 
curtain  manner,  whereas  the  bags  containing  bad  materiel  wore 
rsirked  by  different  letters  and  sewed  differently.  This  loads 
m;  to  believe  that  the  material  shipped  comes  from  two  different 
sources,  that  is,  the  good  from  V-'ansladon,  and  the  bad  perhaps 
from  Vfebau,  or  soma  other'  source.  If  our  Clasnist's  turalyooc* 
of  the  trouble  is  correct,  or  our  beliofethat  you  are  shipping 
us  material  obtained  from  tv/o  different  sources  is  correct,  we 


it  occurs ,  and  if  nui 

Why  you  no t  hi 

only;  at  any  rate,  v> 
tho  quantity  supplio 
as  you  orj;  increase 
traction,  ov  obtain!: 
tho  proper  (jrade. 

;1l  it 
i  r>W 

d  !:• 

what'  tho  trouble  it>  anti  where 
„taet  c?ui  a uo  no  ramson  whatever 
uipply  uts  vlth  tho  /;oo(l  material 
.at  on  'O'i.r  doinr-  on,  ovtm  thc-u<£i  • 
inter  lolly  reduced  until  such  tine 
bv  ohr.niyhv:  your  method  of  ar¬ 
terial  fro n  tin;  nine  now  supplying 

v.ra  ittv  e  oiqslalned  \/hat  m  thought  \«uo  the  cauiso  uf  trouble 
in  wreviouo  correspondence ,  and  in  ono  letter  written  you  last 
fall,  jjifiinl v  u bated  fcliat  the  material  •.»  required,  and  which 

would  he  similar  to  that ■  originally  .supplied,  must  ho  above 
doweea  conRoalinc  point,  above'  aoh,  and  from  .15  to  .40> 
matter  insoluble  in  bonaol.  Vo  also  explained  that,  in  our  opinion, 
and  on  thin  wo  lmve  w  letter  from  you**.  the  material 
obtained  from  you *y"T>no  mine  vma  hotter  than  frwm  the  other,, or 
if  it  wan  not  tho 'material,  that  tho  method  of  uxtraatirir*  same 
was  bettor  at  one  placo  than  tho  obiter.  Our.  explaining  the ^  nattier 
affpiin  in,  therefore,  worhups  ssnnoeeeanrs',  but  la  done  for  trio 
pumiouo  Of  (jivinR  you  tho  benefit  of  every  poesible  reason  we 
can  asaiipi  or  locate  which  mi^vt  cause  the  trouble,  nUTtcmch  .wo 
believe  that  the  teat  shoe  to  which  you  have,  ooploc  of  vmioh  are 
cent  \jb,  show  very  plainly  for  thpmcelven  that  the  difference  .in 
coiiRoallnR  point  in  evidently  the  main  cause  of  trouble ,  arid  if 
it  is,  vi: ' believe  with  your  wide  experience  you  should  bo  able 
bo  dotoraino  tho  cause  of  these  differenooo,  and  arranjje  to  supply 
material  that  will  fully  comply  with  our  requtoteumts. 

rindly  let  uw  have  your  reply  i«  thic  rmbior  at  the  orrlaoct 
pooBible  moment,  so-  that  wo  ray  hnov;.  what  arrcn«?erwnts  we  can 
depend  on  in  f-uturc*. 

Yours  v(>ry  truly, 

General  Ktnr.^er. 

CAMDEN.  N.J.u.s.a.  Feb.  17,  1910 

Mr.  Frank  L.  Dyer,  President, 

National  Phonograph  Company, 
Orange,  II.  J. 

Dear  Sir: 

I  have  your  letter  of  February  15th,  concern¬ 
ing  the  Harry  Lauder  advertisement. 

I  am  strongly  inclined  to  think  that  the  Victor 
Company  are  well  within  their. 'legal  rights  in  advertising 
in  the  United  States  that  we  have  the  exclusive  right  to 
Harry  Lauder's  services  for  the  purpose  of  making  records. 
However,  the  advertisement  might  be  misunderstood  and  ± 
believe  that  the  Viotor  Company  will  be  perfectly  willing 
to  change  the  advertising  so  that  no  misunderstanding  is 

I  shall  lay  the  matter  of  placing  an  explana¬ 
tory  advertisement  in  the  Trade  papers  before  the  next 
Executive  Committee  Meeting  and  I  believe  that  the  Victor 
Company  will  take  this  course  in  satisfying  your  complaint 
in  the  matter. 

I  have  ordered  the  discontinuance  of  the  mailing 
of  printed  matter  containing  the  wording  that  you  object  to, 
pending  final  conclusion  of  the  Executive  Committee  Meeting. 

I  wish  to  call  your  attention,  however,  to  the 
wording  of  your  Grand  Opera  advertising  which,  I  think,  is  a 
parallel  case  and  of  vastly  more  importance  because  of  the 
greater  magnitude  of  your  advertising  in  which  the  objection¬ 
able  statements  appear.  The  Viotor  Company  has  paid  Scotti 
large  sums  for  his  exclusive  services  and  we  have  also  paid 
Slezak  large  sums  for  his  servioes,  and  while  they  are  not 
exclusive  to  us,  we  are  certainly  entitled  to  all  that 
we  have  paid  for  and  you  have  no’  right  whatever  to  state 
that  Mr.  Slezak  has  sung  certain  selections  only  for 
you.  You  have,  of  course,  a  perfect  right  to  advertise 

that  you  have  hi8  exclusive  services  from  a  certain  date, 
or  that  you  have  his  exclusive  services  for  cylinders. 

Tho  wording  in  a  numhor  of  your  advertisements 
has  been  extremely  offensive  to  us,  and  while  we  have  made 
no  complaint  in  the  matter,  we  have  been  vory  keenly  aware 
of  it.  I  do  not  believe  that  tho  National  Phonograph 
Company  intendod  to  make  disparaging  reflections  on  the 
Victor  Company  and  I  oan  assure  you  that  tho  Victor  Company 
had  no  intention  of  making  disparaging  reflections  on  the 
National  Phonograph  Company. 

During  your  interview  with  Mr.  Child,  you  made 
some  remark  on  the  difficulty  of  controlling  these  adver¬ 
tising  fellows.  I  cm  quite  willing  to  accept  that  this 
is  the  gist  of  the  whole  matter.  V,re  will  undertake  to 
make  an  extra  effort  in  the  future  to  control  our  adver¬ 
tising  fellows  and  I  hope  you  will  do  the  same.  I  shall 
make  whatever  measure  and  explanation  of  apology  that 
the  circumstances  of  tho  case  seem  to  demand,  regardless 
of  your  actions  and  I  will  lay  a  more  specific  complaint 
before  you  as  to  your  advertising  in  the  past,  which  I 
hope  will  at  least  have  the  effoot  of  enabling  you  to  bet¬ 
ter  control  the  matter  of  advertising  and  I  hope  you  will 
aot  as  liberally  with  us  in  the  matter  of  explanation  as 
we  uct  with  you. 

Yours  truly, 


Poll.  10,  1910. 

Hi’-  Shorn  s  A.  RO.icon, 

Pori  ilyora ,  Plorida. 

Do.  r  Mr.  Edison : 

If  you  arc  catisfiod  no  to  tho  feasibility  of 
nahinc  diamond  pointo  and  no  find  upon  tontine  the  point  you 
cent  uc  that  it  works  all  rj£,hl ,  don't  you  thin]:  no  should  mho  ■ 

,  an‘  nGc:®at{3  to  commence  nernuf  act  urine  then  go  ac  to  he  euro 
to  have  enough  on  hand  Vfc  no  cot  ready  to  put  out  tho  non 

I  think  that  tho  machine  should  ho  ready  for  the  market , 
if  possible .‘'not  later  than  Oqto.VQr  lot;  that  thcro  should  bo¬ 
at  loaot  throo  different  typoe,  collinc  at  ;'?2D. 00, '40.00  and 
vCO.OO;  that  tho  &G0.00  machine  should  havo  an  onoloood  horn; 
and  that  tho  smallest  nunhor  of  machines  to  huild  would  ho 
5,000  of  oaoh  typo.  to  niGht  find  r/hen  W  finally  dioclooo  tho 
natter  to  our  Jobbers  and  tall:  with  then  that  a  larcornnnhbor 
of  machines  will  havo  to  ho  nut  ■  hreugh  at  tlio  start- 

In  addition  to  this,  wo  ouGht  to  havo  on  hand  at  loact 
10,000  attaohnonto  to  Go  on  Victor  machines,  so  that  altoGothor 
tlioro  nill  h1  vo  to  he  a  good  many  thousands  of  points  mdo. 

As  ocn  as  tho  point  is  thoroughly  tostod  out,  I  think 
170  ouch*  to  start  in  a  snail  nay  and  hoGin  to  manufacture  thorn 


,  PHONOGRAPH  COMPANY  y  ^  y>  ^ 

□o  aa  to  find  out  hot;  rapidly  they  on  he  n-nufacturod,  what 
they  will  cent  nd  how  many  wo  oan  tjrifco.  IS  tfO  do  not  do  tluo 
then  tho  whole  plan  nay  he  held  up  hy  thic  one  little  feature. 

If  you  ecroo#ith  no,  I  wish  you  would  lot  no  Imow  juot 
wJaat  machinery  will  he  neooacary  to  put  in  one  unit  for  nahlne 
tho  point o  oo  that  I  can  arrange  to  have  thio  done  the  monent 
wo  find  that  evorythinG  i'-'  -'-11  right* 

Yours  vary  truly, 



Fo*  .  2f3,  1910. 

Ur.  Ehonac  ' .  Kdlcon, 

Fort  Hyors , 


Dor.r  Mr.  Edison: 

Your  two  monoranduns  on  the  subject  of  diamond 
points  have  boon  received.  I  r.n  havinc  tho  question  looked  into 
now  v.'h other  or  not  tho  Phonograph  Works  purohasod  10,000  points 
from  Van  Hoppes,  and  if  so  I  -ill  find  out  what  became  of1 thorn. 

Chop-  can  no  doubt  Give  no  tho  information  if  it  cannot  bo  unearthed 

Hocarding  near,  Aikon  has  mado  a  tost  on  a  rocord  fornod 
of  wood-pulp  and  Aylsworth'a  rosin  with  G  cuncoG  on  the  speaker 
and  at  500  revolutions  thcro  was  absolutely  no  difforonco  in  tono 
so  far  as  wo  oould  toll,  and  only  a  very  slicht  inoreaoo  of  surface 
hardly  distinGUiohablo  to  t7io  oar-  A  port  of  tho  record  was  nlayod 
SOO  tinos  and  tho  root  not  at  all,  and  in  reproducing  tho  entire 
rocord  you  could  hardly- toll  tho  worn  part  from  tho  other.  At 
'SCO  reproductions  a  very  slight  gray  wear  could  bo- soon  if  tho 
record  was  held  up  to* tho  light,  tho  diamond  point  apparently 
Grinding  off  tho  material  as  a  vory  fine  dust.  She  point  shows 
no  polish,  and  it  is  possible  that  if  highly  polished  there  would 
bo  fiSf loss  woar. 

s/ 25/10. 

Ytttli  a  record  node  of  talc  and  rosin  roinforcod  with 
cloth,  the  record  fcoonno  vory  rough  ' t  50  reproductions  and  was 
practically  dootroyod  at  56  reproductions,  so  that  there  cm  ho 
no  question  hut  what  wood-pulp  is  the  stuff  to  use. 

Regarding  tho  manufacture  of  tho  points,  I  have  discussed 
tho  question  with  both  V/ehor  and  ‘ikon,  and  they  hotli  fool  that 
this  wor3:  should  %  ’one  hero  and  not  at  Glen  30ijgo.  frapliagon, 
head  of  tho  Sapphire  Boportnent ,  in  a  cautious  non,  and  hosidos 
he  would  not  know  what  the  points  worc-usod  for.  I  told 
to  impress  upon  him  t3ic  inportanco  of  3:oopi ng  tho  thine  quiot,  hut 
that  at  any  rate  tlic'  points  were  being  developed  for  an  indestructi¬ 
ble  record.  By  liavinG  tho  points  r»do  3ioro,  wo  get  the  bonofit 
of  Craphogon's  onpori once, 'whereas  to  start  over  in  Glen  P.idgo 
would  japan  practically  break-ire  in  r  new  force.  Craphagon  lias 
node  a  number  of  sapphires  with  .000  points  for  .'ikon,  so  that  ho  . 
ought  not  to  have  any  particular  difficulty  with  tho  diamond  points, 
sinoo  you  say  tho  problem  is  quite  easy  after  all. 

I  have  turned  'over  to  Sro.phagon  tho  four  points  you 
send  mo,  w'tli  tho  request  that  ho  try  to  work  thorn  up  and  lot  mo 
3aiow  what  the  dimensions  should  ho,  and  I  will  then  t:kc  up  tho 
matter  with  fan  iioppos  and  coo  what  they  can  bo  bought  for.  I 
note  tliat  you  .paid  seven  cents  apiece-  for  them. 

Regard  ng  tho  guiding  groove  on  tho  disc  for  food  stylus 
in  tho  record  groove,  Y/oltcr  liillor  end  .'ikon  liavo  n  do  some 
experiments  and  apparently  tho  idoa  is  all  right,  hut  I  will  not 
say  positively  that  this  is  so  until  they  nako  a.  final  report. 

2ho  difficulty  I  would  coo  would  bo  that  the  norl:  on  t3io  meter 
would  he  incrcacod.  ”0  could  take  core  of  this,  of  course,  in 

::/ no/io. 


doBlcniiB  :ft  noohlao  c 

■colvca,  but  In  nofclnc  an  attaohnont  for  tho 

Victor  I'aohinc  a  anallor  sound-bo:;  night  have  to  be  used  no  aa 
I  also  foftnd  nyaclf  that  if  an 

not  to  -DVorload  thoir  notor. 

.008  point  io  «*r  ncod  on  a  Victor  sound-boa,  tho  xnotcra  in  tlio 
ancllor  typos  of  nachlnoa  arc  hardly  strong  ono.gfi  to  tarn  a 
record  v;lth  up-and-Coun  cut.  Apparently  it  ia  lihe  pulling 
a  weight  over  a  very  rough  aurfaco.  So  aaftfcc  an  attachncnt  ior 
tho  Victor  machine  to  fit  our  rocorda  vrill  thoroforo  involve 
nahinc  tho  noun:1 -boa  considerably  lighter- 

Sours  very  truly, 

[CA.  MARCH  1,  1910] 

. .  .  i-  .  ........ 

J  d~0  .  VW-'f' '  QaJL 
-  CG-e  iu  &Tc>  *  uo  oc,e  6  ^ 

ouf"  CC-SL  U5-G^c,  cv.  C/la. 

C*  <!W  \~Qjum  Uut^  (s%.  i 

(j)  * 

V  °f”  9/  <>-<—  CLGtJLes^. 

itk  >cUL|^t.^<=5-^'-€^-s>  /  k-C*_«Jr£,  Cc.  ,1 

^2Lo-o-V».  «..(^C?^,  >C_<L.*.<r.*^)  . 

N.L^-ejxd't  ^  Z-  i  Los. 

y>  CP-'-'^C'  CA.  tnnJ'^ — TVC -*fcA.c<^ 

.  t-<X^CC_c  ’y^rc’^'d'S*  - 




Uly$\ji£$~  C&.0-,  p.. 


\[t,c£-<n'  Crt*jc,c-  c^O-&.  < 


Ceddr  J  _ 

P^k-fUMA^*  »  vvc«.  UjlO-£^»*-««a6 


Mr.  2hojv.h  .  .  Kdicon;., 

Port  Myore,  I’lorlda. 

Dear  Mr.  hdionn: 

I  have  jimt  received  your  :::  or.-.-.:' or.  :.'u; 

subject  of  —attlng  -  gui dinc-Cro6*»*°  in  the  record. 

In  dr  s  c  us  sr  .:g  j..  i "  !.ir.H  .io~  ••iui  ,.c ocr ,  c.-er,  . . . '.X. 0 0 r 
Miller  -r.d  ."ehiffl,  *:-*cy  arc  11  o-yoaod  to  —lifting  foed-groovo 
in  the  record  r.d  advocate  ' r.aohi  c  with  a  true'.  r.ical 
i'cc.d.  2ho  objections  to  a  fccd-grc  vc.  the  record  re: 

1.  It  lir&ta  the  available  length  of  ton  record  groove 
If  a  food  screw  is  net  used,  t  0  record  groove  err.  *00  run  very 
nuoli  furthor  in  to  the  center  and  nuc'Ji  longer  rcgrcductions  ob- 

3.  It  tehee  a  coed  deal  of  weight  :o  hold  the  food-  • 
iiiG  stylus  in  tiro  food-groovo ,  '  nd  ’thia  in_.oooo  a  considerable 
additional  load  on  the  motor.  Walter  Hiller  tolls  be  ho  fibs 
DUr.ricod  to  find  how  uooli  weight  bod  required,  hut  of  course,  if 
the  BOund-liOs,  was  lichtor  this  objoction  would  not  ho  00  ni’O- 

5.  She  foodinc  stylus  in  tiro  food-groovo  vory  material¬ 
ly  increases  the  scratch- 

On  the  oth.or  hand,  by  doing  away  with  the  food-croovo 


,2  2/5/10.  NATIONAL  PHONOGRAPH  COMPANY  2  ■  A.  kdlCOn. 

on  tJio  record  end  providing  the  machine  with  a  nochnnical  food 
thoro  nro  the  following  advantages : 

1.  s?ho  naolvino  ia  arear  ont  ly  noro  simple  and  not  do 
trappy  looking- 

2.  Vo  liavo  a  longer  rocord,  one  that  can  ho  provided 
on  tho  innido  with  a  good  locking  label  and  which  would  not  bo 
chanced  when  the  Berliner  pat  onto  expiro. 

She  objections  which.  I  con  coo  to  the  ueo  of  a  nochnni- 
cal  feed  with  no  food-groove  on  tho  record  are  tho  following: 

1.  It  would  bo  very  dance  rous  to  put  out  a  o|fj$Pttfce 
attachment  by  which  Victor  and  Columbia  machines  could  play  our 
•records,  bocauco  in  that  oaco  we  would  bo  soiling  an  attaenront 
and  a  new  record  that  would  probably  infringo.  Of  course  wo 
could  mho  the ce  attachments  for  calc  abroad,  but  it  would  not  bo 
safe  to  soil  thorn  here  until  the  Berliner  patent?^;'  e::i dro.p.  Clio 

date  of  the  expiration;  of  tho  Berliner  patent  is  not  entirely 
certain.  •'.  hvoryonc  horoto  :  ro  has  aominod  that  tho  patent  cx- 
nirod  in  7’cbruary,  1911,  but  roccntly  the  Circuit  Court  of 
Appeals  at  Philadelphia  ( two  judges  against  ono )  docidod  in 
another  ease  that  under  the  some  eircu  stances  the  U.  patont 
waG  not  limited  hy  tho  foreign  patent,  end  if  this  is  the  law  then 
the  Berliner  patent  will  run  for  another  year,  or  urtil  Pobruary • 
1912.  She  Plriladolphia  Court  is  exactly  contrary  to  t’no  Boston  ■ 
Court  of  Appeals,  and  I  liavo  but  little  doubt  that  tho  Supremo 
'  Court  would  rovorso  this ' decision ,  but  it  would  bo  too  dangorous 
to  tolso  this  risk,  and  undoubtedly  the  Viator  people  would  brine 
suit ' against  ono  of  our  dealers  or  jobbers  in  Philadelphia  so 
as  to.  have  tho  benofit  of  .this  decision.  Shis  bcinc  so,  if  wo 
loavo  off  tho  food-groovo  from  tlio  rocord  we  would  have  to  wait 


until  February  1912 

„mt  to  wait  our  rooorda  to  bo  Ployed  on  Victor  on.  Colombia 

r.iaohinos ,  and  this 

rcry  considerable  lose 

ot  available  buoiucco.  It  to  rood  the  £»od-croovo  on  tbo  roooni, 
,  have  no  doubt  but  tbo.t  on  ottoohwnt  ton  Victor  cad  Columbia 
uochiroa  could  bo  Viiodo  t  but  Mi  bo  clean  ol  aaa*BM*. 
jh'cr'  with  this  possibility  in  front  of  us  our  non  here,  partiou- 
i-viy  -:lloon.  Polboor  end  Oooduin,  tool  tbo.t  it  mold  bo  bettor 
to  cto.rt  out  ut  r:  ot  rith  our  ovn  unoblno  no  cm-  oun  rooordn 
and  build  ur.  a  |ood  feican  business  on  that  lino,  “ic'-a 

■ooplo  •  One  of  ; 

noint  X  have  nodii 

out,  Goodwin  having  tai-»d  very  ptr.  1 

i  feel  ilv/t  in  ordor 

ham  -.inch,  the  discs  fill 

far  apart  as  possible,  the  disc  machines  and  records  being  rela¬ 
tively  euponsivo  and . appealing  to  the  city  element ,  am-thc^ 
cylinder  line  being  ehoapor  coins  into  tho  country  and  to  wio 
worliing  non-  V.’o  therefore  thought  th-t  tto  should  start  out  with 
0.  disc  machine  soiling  for  .$50.00,  on  enclosed  horn  machine 
selling  for  $75.00  and  possibly  a  more  expensive  machine  at 

$200.00.  If  tie  should  put  out  disc  machines  as 

.they  would  undoubtedly 

;  into  tho  cylinder  : 


C/C/ 10. 

p.  A.  Kdiocn. 


oharo  of  tho  city  trade  without  particulnrlyf^xiinc  our  own  cyl¬ 
inder  business-  Of  course,  lator  on  ns  com  as  the  thing  G°t 
Seine  v;o  v:ould  have  to  tnfco’  up  a  dfioc  w  disc  nacMno,  because 
thoro  would  undoubtedly- bo  a  demand  for  fchcA  from  our  dealers, 
and  when  this  tir.e  erne  wo  night  bo  in  a  position  to  reduce  the 
price  of  cylinder  records  and  possibly  sot  out  an  indestructible 
record,  which,  would  continue  this  business  indefinitely. 

n.  By  nrovid  X  the  nachino  with  a  nocha.nical  food 
it  would  .  Isc  bo  impossible  to  sell  n  attaobnont  that  would  rr.  bio 
Victor  or  Colombia  records  to  bo  played  on  then,  b-couso  the  -itch 

of  our  rocord  is  finer  than  theirs-  C-hic  ‘would  necessitate  tho 
use  of  cosnlicatod  spocd-ch-  ngir.r;  devices’ 

screw.  hut  if  you  are  :•!  in 
until  later  and  limit  ov.v.n  Ive 
rooorda  th  t  will  play  on  our 
thinl:  tho  :  achincs  should  h- 
idea  of  a  record  that  will  pi: 

•..ait  i'  r  those  attach: -onto 
,•  the  sale  of  machines  and 
.ires  only  in  this  country, 
nee.  ..‘nical  food,  because  tho 
‘.re  minutes  or  "ore  is  very 

attractive  and  would  nnic  a  very  strong  t aiming  po  :.nt  - 

I  note  what  you  say  regarding  oponhers,  and  in  accord¬ 
ance  with  your  roouost  I  beg  to  advice  you  in  th.o  case  of 
the  Victor  Ihdiibition  liodol  Bpoahor  the  weight  of  tho  sound-boa 
is  0  1/2  ounces,  and  of  tho  owinginG  am  ono  ounoo,  noising  a 
total  prossuro  of  6  l/S  ounces  on  tho  rocord.  In  the  ease  of  the 
Bathe  Concert  Sweater,  tho  weight  is  7  7/8  ounces,  wacrcas  wiuh 
the  ssinll  Bathe  Bnoakcr  for  use  with  tho  Victor  machine  tho  wight 




A.  Edison. 

io  C  ounces.  She  dianotor  of  the  ball  in  the  "at ho  speaker 
•is  40/1000.  My  idea  v:as  to  substantially  copy  tho  Patho  spa ah or . 
An-  1  --.-veto  you,  with  cn  C/'lOCO  diamond  point  and  a  sycc.har  woigli- 
•j nr-  5  ouncos,  Alton  obtained,  30 r-  roproduotions  without  any  up  ro- 
cic'.blo  woar;  certainly  vt>  could  not  on-poet  to  do  nmeh  b  ttor  than 

this.  She  Tjatho  opoefcor  io  simple  and  cheap  and  good-looking 
ar.d  there  is  no  chance  for  rattlo  or  bussing  in  it.  It  has  boon- 
tcoted  out  end  would  not  roquirc  any'  experiment 5 n£  on  our  part. 

If  wo  put  out  an  entiroly  new  speaker  wo  night  have  troub'o  in 
having  then  all  wort  properly.  In  tho  caoo  of  the  Pnbcrola,  we 
arc  still  having  mere  or  loss  trouble  with  some  of  our  speakers 
brooking  through  the  side  walls  of  tho  record,,  but  sc  far  H r. 

Weber  has  not  boon  ablo  to  toll  why  a  or.  10  of  thorn  skcu2.d  do  slds 
and  otkrs  not.  I  of  oovroo  realise  that  with  tho  disc  prepo¬ 
sition,  having  u.  vory  ha.rd  rate  rial  .  r.C  a  relatively  heavy 
speaker,  we  would  probably  have  1 0  a  trouble  in  getting  uniform 
.^isdifihiisfaotory  results  than  with,  the  Pnbcrola,  but  tho  fact 
rouaints  that  V.’cbcr  novor  anticipated  half  the  trouble  he  has  had 
whon  tho  Anborola  spoahor  was  dosignod  by  him. 

I  wish  you  would  thirst  over  those  matters  and  let  1.10 
have  your  views  as  soon  as  possible.  It  is  nooossary  that  ’"alter 
Hiller  should  go  ahead  with  a  nunbor  of  Grand  opera  records  on 
a  disc,'  but  I  do  not  see  any  reason  why  he  cannot  rako  then 
without  the  food-groove, ‘  end  if  we  docido  positively  to  use  a 
food-groove  it  call  be  afterwards  cut  into  tho  naotor. 

Yours  vory  truly. 


Sinco  dictating  tho  above,  Walter  nil -or  has 

just  handed 



no  a  roport  on  tho  nano  quoDtiono ,  .  nd  I  hoc  tc  onoloco  a  copy 
tlioroof.  I  tliinl:  lie  2ma  covorod  all  ire  ;vinte  very  fully. 

I  night  &l-:o  pay  that  I  have  juat  had  Ion,-; 
with  v/c'oor,  'Ikon,  Gal,’  ,  fra  haycn  and  hchiiffl  ovor  the  r.bcrcla 
citsvtion,  r-  Volic  r  fcclc  vito  f--  t  •:  he  cr.i’.oa  of  tho 

Giffiev.'.Uy  of  cuttinr;  thro-yah  tho  aide  wr.l'c  :1c  the  fact  that 
tic  pivot  for  tho  flc.  iirr  v.-cicht  in  the  /.rberoXa  had  ..ore  or 
looo  Mnd  in  it.  ho  finds  t:  at  by  noisy;  tho  earn  pivot  ac  on 
t: ■  del  n  ore.-.* -.or  tho  difficv.ltioc  are  .••.-•arontly  cvcrccr.o. 


.  '  V. 

t&'k  fc*~er?£e~C- 

^  *y 

^U'-vi'tXr^^J  ~J~ — - 

'  6  '/*.  /? 

( y%  ‘j° 

^»uti  y/oso 

6-  oy. 

Bear  Edis> 


'o^a.  6 

iXju UlIIc£~.  1 

a  ^Hi^opappeal  Before! 

I  need  your  signature  with  mine  on  a  EaSCc 
our  papers  can  he  filed. 

The  Judge  whA  made  this  necessary  is  known  as  a  friend  of  the  Master, 

It^was_  not_  Budge  Hazel  who  has  already  decided  Broadly  in  our  gavor 
on  the  main  case. 

The  Master  to  whom  the  matter  was  referred  for  an  accounting  in 
damage s._ for  infringement  By  use  chose  to  disregard  the  decision  of  the 
Judge  as  to  the  conduct  of  Gould  in  appropriating  our  property  to  his 
own  use  and  that  of  his  company .and  took  his  own  view  as  to  infringement; 
and  as  the  records  of  A.  £=  P.  Tel  Co. had  Been  destroyed  By  fire  no  profit 
could  Be  shewn  from  use^  and  the  Master  wrongly  refused  to  permit  us  to 
put  in  secondary  proof. 

The  A.&P.Co.  used  the  Automatic  System  for  2  1/2  years, and  then 
abandoned  it  after  Gould  had  forced  the  V/  pool  earnings' 

By  which  A.ft  P. received  $1,893. 000, net  in  40  months  priorto  the 
consolidation  of  1881, making  it  a  dividend  payer  of  4  1/ap.per  cent 
worth  $60,' 00  per  shariat  which  the  Iff  .U. valued  it  also  in  the  consolidation/ 
The  Master  even  found  that  Gould  holding  our  titles  enabled  him 
to  force  this  pooling, and  had  good  faith  Been  followed  our  gross  interest 
would  have  Been  about  1/4  the  net  earnings  . 

The  Master  also  found  the  A. ft  P.  stock  which  we  should  have  receiv¬ 
ed  sold  at  $29 , 50  per  share  in  1875  even  Before  the  pooling  . 

Well anyhow  the  Masters  fee  under  the  statute  is  from  $*Tto  $10.  per 
day  for  hearing  the  evidenceand  making  his  report. 

J^-eertain  the  court  has  discretion  to  increase 

20  Broad  Street 

New  York, _ 191 

the  fee, hut  in  this  ease  it  was  not  fixed  hy  discretion, hut  the  Judge 
held  there  was  an  agreement  between  counsel  fixing  the  fee  at  $3,500,00 
which  is  absolutely  untrue, 

Ehey  were  never  able  to  shew  any  such  agreement. 

Our  oounsel  never  agreed  to  any  fee, for  he  always  told  me  there 
was  no  responsibility  on  our  part  until  Judge  Hazel  should  be  overruled. 

Furthermore  our  counsel  had  no  authority  to  agree  to  any  fee, and 

never  suggested^to  me^nor  asked  for  any  authority. 

Ehe  claim  of  an  agreement  is  based  on  a  statement  of  Eaggart  the 
W.U.  counsel, who  wrote  a  letter  to  our  then  counsel,Eudge  Burnet, dated 
February  9th  1909  asking  Burnet  if  it  would  be  satisfactory  to  divide 
the  fee  of  $3,500, 00/ and  if  so  he  Eaggart  would  arrange  with  his  client C 
i^  Burnet  would  arrange  on  his  part. 

At  that  very  time  Burnet  had  been  dead  4  days, having  died  at  my 
Hospital.  ^  ^ 

I  have  stated  this  in  some  detail  so  you  oould^the  truth  and  see 
how  groundless  and  arbitrary  is  the  feejas  fixed, and  as  shewing  the 
absence  of  risk  in  signing  the  Bond. 

However  we  must  give  the  bond^and  I  think  I  can  obtain  a  satisfac¬ 
tory  Bond  here  without  any  other  security  than  your  name  and  mine. 

She  firBt' ;appeal  papers  are  all  ready. 

Eocomplete  the  printfid  record  before  argument  before  the  circuit  court 
of  appeals  will  cost  about  $2500,00  blit  I  have  already  arranged  to 
take  care  of  that,  so  that  atjpresent  all  I  need  from  you  is  the  Bond  on 
appeal  from  the  Masters  report  and  especially  appealing  from  his 
extraordinary  and  unjust  fee. 

I  will  have  the  Bond  properly  prepared  and  execute  it  myself, and 
I  can  either  send  it  to  you  for  signature, or  if  you  prefer  you  can 
send  me  a  note  authorising  me  to  sign  for  you  in  this  particular  case, 
which  I  think  will  satisfy  the  Surety  Co. 

Please  telegraph  me  on  receipt  of  this  so  I  can  push  things  as  it 
is  very  desirable  to  close  it  up  during  next  week. 

2.  -  5/14-/10.  NATIONAL  PHONOGRAPH  COMPAriV  EdlflOn. 

.  tine  thoir  account  had  running  about  $10,  00  to  §20  000 
•  T>or  month,  in  fact,  aono  months  lose  than  this,"  and  I  thorofore 
aaid  that  I  thought  tho  notoa  would  not  amotint  to  noro  than 
Osoigpoo  for  bach  of  tho  two  months.  in  tho  Pall  baboon  Bros.  ' 
bogln  to  advertise  vory' heavily,  oo  that  beginning  with  booonbor 
thoir  purehaoo||  ineroaood  to  a  vory  groat  ontont,  end  I  an  glad 
to  aay  that  thooo  imreliasoo  aro  otill  boing  Kopt  up  and  apparently 
inoroaoing.  in  voluno,  consequently,  thoir  purchases  for  Docombor 
amounted  to  (=60,005,  for  which  wo  accepted  Baboon's  note  ondorsod 
by  Baboon  Bros. ,  duo  'day  10th,  1910;  and  their  February  purchases 
amounted  to  @95,475.79,  f  r  which  they  have  oont  on  a  note  t;  -day 
due  July  3.1,.  1910.  Ciiio  will  ,rr.3ro  u  wards  of  @150,000  that  no 
will  carrying  on  notos  for  then,  but  I  do  not  entertain  the 
o  light  cot  doubt  but'  that  they  will  noct '.thorn  promptly.  Thoir 
January  accoiuit,  amount ing  to  @00,500  was  paid  in  cash,  and  tho 
understanding  is  that  tho  ilaroli  and  subsequent  accounts  arc  also 
'  to  bo  paid  in  cash. 

I  want  you  to  understand  tho  situation  .because  tho 
amounts  arc  vory  much  higher  them  I  told  you  they  probably  would 
bo,  duo  entirely  to  the  fact  that  thoir  purchases  since  December 
hnvo  enormously  increased.  You  my  be  intorootod  to  Imow  that  ■ 
Baboon  Bros..'  purohaaos  for  February  woro  .nearly  S5j5  of  tho  total 
purchasos.  by  othor  Jobbers  in  tho  United  states,  and  in  view  of 
tho  groat  offortb  our  competitors  have  made  to  got  thorn  to  toko 
on  thoir  lino,  it  scorns  only  reasonable  tc  mo  that  wo  have  got  to 
do  ell  wo  can  for  thorn  oo  long  as  it  is  consistent  with  sound 
financial  policies. 

.  Yours  very  truly, 

FBD/IV/T7  ■  .  \  ,  . /  .  .  ,'w 


3roa.  *  notes  for  recover  arid  Tolmiary  account  a  and  to  allow  thorn 
2‘fo  dinoount  the  same  as  if  they  paid  cash.,  the  notes,  of  oourae, 
to  ]>oar  interest  at  tho  rate  of  6#  per  annum.  I  told  him  that 

?/*£>  ft/ 


ORANGE.  N.  J. 


Doar  Mr.  Edison: 

Your  memorandum  of  tho  6th  inst.  has  hoen  received 
in  roforonce  to  disc  machines  and  records. 

If  a  food-groove  on  the  record  is  used,  Walter  Miller 
figures  that  it  will  not  he  possible  to  get  four  minutes  on  a 
10-inch  record,  because  there  ought  to  be  at  least  a  space  of 
3/8  of  an  inch  between  the  record  groove  and  the  feed  groove  in  Which 
to  plaoe  label.  If  it  is  definitely  decided  to  use  a  food  groove, 
the  records  will  still  bo  longor  than  Viator  records  for  the  same 
size  disc,  but  if  a  feed  groovo  is  not  used  thore  would  bo  abso¬ 

lutely  no  comparison  in  length ''between  the  two  types  of  records 
'and  we  would  have  a  very  strong  talking  point  on  that  score. 

I  note  what  you  say  regarding  the  decision  of  Judge  Hough. 
I  think  I  read  tho  article  in  the  Talking  Machine  World  to  which 
you  refer,  but  it  was  a  statement  preparod  by  the  Victor  Company 
and  was  therefore  greatly  exaggerated.  Thoy  claim  that  the 
Berliner  patent  is  infringed  by  a  mechanioal  feed  device  if 
by  omitting  the  mechanical  feed  the  sound  box  will  be  fed  from 

tho  record,  but  there  is  absolutely  no  basis  for  this  claim. 
The  exact  case  that  Judge  Hough  deoidod  was  against  the 

SHEET  No.  2  DATE,  g/l4-/l0.  NATIONAL  PHONOGRAPH  CO.  TO  I .  A.  EdiCOJH 

Schroodoy  Conip T:ny ,  and  I  iininod lately  looked  it  up  and  found  that 
at.,  the  hearing  it  was  admit  tod  the  dofohdents  that  ihe  po.ehon- 

ioal  food  thoy  used,  was  a  more  subtorfuge  and  they  put  no  reli¬ 
ance  on  it.  All  that  they  had  was  a  spring  which  tended  to  force 
tho  tono  arm ■ inwards  towards  the  center  of  the  record,  so  that 
the  roftord  instead  of  feeding  the  ami  held  it  baak  against  the 
tension  of  the  sprliig  and  permitted  tho  spring  to  do  the  feeding. 
Obviously,  this  was  a  makeshift  or  a  more  reversal,  and  it  must  bo 
remonborod  that  in  that  ease  tho  defendants  were  using  reoords 
with  a  lateral  cut.  furthermore,  this  oxaot  form  of  so-oallod 
moohanloal.  food  had  alroady  boon  unfavorably  passed  xipon  by  tho 
Federal  Courts  before.  It  is  by  no  moans  eortain  but  that  a  . 
req or d  usfng  an  up-and-down  cut  would  not  infringe  tho  Berlinor 
patont,  oven  if  the  sound-boi:  wore  fed  from  tho  record.  In  all 
of  tho  suite!  that  have  boon  brought  on  tho  Berliner  patent  tlio 
rooorus  h&vc  hoon  provided  with  a  lateral  cut  and  have  either  had 
no  mechanical  food  at  all  or  else  a  spring  food  like  that  re¬ 
ferred  to  aboy§.  the  Supremo  Court  specifically  3aid  that 
Berliner's  invention  was  the  lateral  cut  record,  and  the  only 
statement  that  has  boon  mad.-  to  tho  contrary  was  oh  intimation,  in 
a  decision  of  Judge  Basel  that  tho  patont  might  not  be  limited 
to  such  record.  All  of  those  statements  have  been  obiter  dicta 
and  weye  not  necessary  for  a  decision  of  the  prociso  issues  in 
controversy.  Since  the  preoiso  point  wo  aro  interosted  fn  has 
nevor  hoon  doteictod,  i.o. ,  whether  the  Berliner  patent  is  or  is  not 
limited  to  a  lateral  cut  record,  I  regarded  the  question  as  doubt¬ 
ful  and  therefore  advocated  a  mechanical  food,  cither  by  moans  of 
a  food  groove  on  the  yedord  of  a  feed  modhanism  on  tho  machine. 

If  a  mochnnipal  food  of  oitho*  type  is  used,  I  regard  the  ques¬ 
tion  of  non-inf ringCuont  as  absolutely  free  from  doubt,  for  the 

.  3-  DATE,  3/l4/l0/  NATIONAL  PHONOGRAPH  CO.  TO  T.  A.  EdiSOn. 

following  roasons: 

(1)  The  record  with  an  up-and-down  cut  at  tho  very 
outset  injects  a  strong  element  of  douht  in  the  case. 

(2)  Tho  Loeds  &  Catlin  Company  made  and  sold  a  largo 
number  of  machines  with  a  mochanioal  feed  without  being  molested 
by  the  Victor  Company.  This  was  aft or  tho  Leods  &  Catlin  Com¬ 
pany  had  boon  enjoined  from  infringing  tho  Borliner  patent,  and 
they  never  suoooodod  in  stooring  oloar  of  tho  Jones  patent  on 
process  for  making  disc  rooords.  They  finally  failed  because 
Leeds  died,  they  were  heavily  in  debt  and  they  had  beon  stopped 
from  making  disc  records. 

(3)  Your  patent  of  1878  shows  a  disc  record  with  an 
up-and-down  out  and  with  mechanical  food  device  comprising  a  food 
groove  on  the  platon  and  other  forms  of  mechanism  for  feeding  the 
swinging  arm.  Undoubtedly  the  swinging  arm  would  bo  fed  from 
the  rocord  if  the  food  mechanism  were  omittod.  Therefore,  if 
Berliner's  patont  is  broad  enough  to  cover  a  record  with  an  up- 
and-down  cut  it  would  havo  to  be  contondod  that  his  invention 
resided  in  the  disoovory  that  the  feed  mechanism  of  your  1878 
patont  could  bo  omittod.  Bor  contra,  if  the  feed  mechanism  was 
not  omitted,  Berliner's  invention  would  not  bo  used. 

(4)  The  original  Boll  and  Taintor  patont  of  1886 
showed  a  disc  record  with  a  moohanical  feed  for  tho  arm  and  a 
flexible  sunport  for  the  sound  box,  permitting  the  reproducer 
stylus  to  oenter  itself  in  the  groove  independent  of  the  feed 
moohanism.  It  is  truo  that  with  this  patont  the  platon  as  a 
whole  was  moved  sidowiso  to  effect  tho  food,  but  your  1870  patent 
clearly  shows  the  use  of  a  platen  turning  on  a  fixed  pivot  and 
With  a  swinging  arm  carrying,  the  sound  box,  so  that  there  would 

obviously  be  no  in' 

Company  it  was  argued  by  r.auro  that 
nstruction  permitted  the  sound  box 

vontion  would  bo  roqui i-od  to  i.pronge  tin-  sound  box  so  that  it 
vrouid  bo  fed  entirely  across  the  face  of  tho  record  by  the  record 
itself,  but  the  Court  hold  that  to  utiliao  Berliner's  invention 
tho  entire  feed  had  to  come  from  the  rooord.  If  wo  use  a  aeohan- 
ical  food  either  in  the  form  of  a  feed  grogvo  on  the  rooord  or 
a  truo  food  dovioo  did  arranged  tho  sound  box  so  as  to  bo  capable 
of  a  slight  independent  movement  to  center  itself  in  the  record 
Groove,  v/o  would  bo  using  tho  oxaot  construction  of  the  Boll  and 
\  !Cainter  **t*a%.  I  admit  that  if  you  can  design  a  sound  box  which 
I  is  absolutely  incapable  of  being  fed  from  tho  record,  it  would 
introduoo  a  further  olemont  of  non -infringement ,  but  I  do  not 
regard  this  as  strictly  nocoscaryv 
^ ^ noforring  to  your  noto  Ho.  S,  I  agroo,  of  eourso,  that 
if  as  good  reproduction  oan  be  obtalno,  with  a  .1  l/a  weight 
as  with  a.  5  or  7  ounce  weight,  by  all  moans  the  lighter  weight- 
should  bo  usod,  because  it  moans  loss  wear  on  tho  stylus  and  los^ 

showed  that  there  was  no  appreciable  wear  wit 
and  even  if  wo  had  to  fall  bade  on  tho  ohollni 
certainly  bo  as  well  off  on  the  subject  of  woi 
Bathe  people, 

somposition  certainly 

ie!  uneasy  about  tho  Baekeland  situation, 

0,  ^  -» vJ/'J  V*  1A  * 

— i,  except  poss^ib: 

yp  oltvim,  but  I  urn  hopeful  that  when  you  return  you  may  find  something 
C^,.'K'^hat  Wil1  1:0  ']'UGt  as  e°od  a°  v 0Qd  pulp  and  v;hicl1  will  remove  this 
^  doubt.  At  any  rate,  the  quastion  of  the  arrangement  of  sound 

'VT  $  t0:>:  t0  acl°P'bo,i  will  not  havo  to  bo  settlod  until  you  return. 

Referring  to  your  note  Ho.  4,  I  can  only  say  that  Walter 
.tiller  reported  very  strongly  on  the  subject  of  scratch  when  a 

feed  groove  is  used. 

tot  investigated  as  fully  . 

as  it  should  havo  boon,  and  it  will  of  course  havo 
tho  problems  that  must  bo  solved  if  wo  docido  to  at 

ido  to  adopt  the  feed 

Ronlying  to  your  note  Ho.  5,  Whiter  bailor  is  3 
inko  up  a  lot  of  masters,  but  in  the  case  of  Carr 

:ight  away,  and  those  are  the  parti. 

lar  ones  I  referred  to. 

\  ;i  1  fe0d  Sr00Ve  and  if  ™  dcoide  omit  it  hereafter  tho  feed  groove 
jj  $C£m  Tj0  cut  out  or  Qlso  the  label  pasted  over  it. 

Z  5  j  A  Rejprtes-ia^^ur  note  Ho.  6,  I  explained  your  idea 

-jj  t  l°f  us  rt  ing  whool^or  ball  to  Walter  Hiller,  and  ho  will 

^Jj  .  ^jtjry^this  out.  In-yuur'^pinion  would  it  bo  possible  to  use  a 

pL^ni  sharP-rlmmed  wheel  working  in  tho  feed  groove  to  effect  the  feed _ 

/*~T\  l  j  itself?  - QojfLR-e.  G*.  <>-*.  l«~«i 

-A  »  ->  \  - dUrv-T  Aft.  ti  *»~ 

h  , , H:fef you 

•  **  absolutely  that  both  ideas  should  be  tested  out  fairljrandjhonestly 
and  the  one  adopted  that  sooms  the  best  from  all  points  of  view. 

This  will  bo  done  as  soon  as  possible  although  tho  work  is  dis- 
couragingly  slow.  The  thread  will  bo  150  per  inch  and  the  repro¬ 
ducer  with  an  0/1000  ball,  which  I  note  you  agree  to. 


Port  hyors,  Florida. 

Door-Iir.  Edioon: 

In  tho  llov,  ¥opk  ' 'homograph  Company  oooo  the  situ¬ 
ation,  as  you  know,  io  that  Hyiaon.  is  seeking  ‘to  rcoovor  from  , 
Andon,  -Fahneotoolc,  I'omAinaon,  otc.  ,  a  sh  *re  of  the  no  ry  obtainod 
•by  thou  and  Judge  hoOgh  hoc  Given  •  yntrn  a  auCgeucnt  for  ('.130,000. 
Andon  and  hie  aooooiatoo  arc  very  .•  nsiono  to  oanpmnioo  this 
ilyciari  natter,  and  I  undorotend  iron  Clarko  and  Judge  llcfoh  that 
thoy  havo  practically  roaohod'a  sottlonont.  2 online on  particu¬ 

larly  is  anxious  to  h'avo  the  nsttor  sottlcd,  because,  as  you  know,, 
thoro  wore  some  ve^y  shady  transactions  in'  connection  with  the. , 
distribution  of  tho  monoy  wo  paid.  A  few  days  ago  hr.  Clarho 
caw  no  and  said  that  tho  only  thing1'  that  stood  in  tho  way  of  a 
sottlonont  botwoon  liynan  and  tho.  Andon  people  was  that  foniincon 
insisted  that  wo  should  give  fonlinson's  firm  and  Andon  and  his- 
fellow  directors  of  tho  .How  York  Phonograph  Go.  a  bond  indonni- . 
fying  then  against  any  illogal  or  unlawful  acts  which  thoy  had 
committed  in  ccnnoction  with  the  distribution  of  the  money.  I 
told  Ur.  Clarho  that  wo .  wovAd  not  considor  for  a  raonont  any  ouch 
insane  proposition  as  this,  bccauso.  I  did  not  Imow  how  far  thoy 

.  ,  •,  .  7  • 

f>  '  '  5/15/ij.O  .  NATIONAL  PHONOGRAPH  COMPANY  /l .  EcllSOIl. 

had  G°no  and  that  to  givo  thorn  c.  bond  would  probably  invito  a 
cont 0  of  th.o  litigation -on  tho  part  of  corno  minority  stock¬ 
holders  who  night  find  out  or  bo  tipped  off  regarding  thoir 
unlav.'ful  actions ;  and  that  wo  woro  out  of  tho  oaao  now  and  pro- 
poood  to  stay  out.  I  oaid,  howovor,  that  00  far  ao  wo  v/oro 
personally  conoornod  wo  had  no  dooiro  to  profit  by  their  unlawful 
ooto  and  that  wo  would  glyo  thorn  .0 ' roloooo-  and  also  an  agreement 
not  to  bring  suit  'gainst-  thorn  or  to  ctir  up  litigation.  I  on-  . 

olooo  papers  tc  oarry  out  thlc  suggootion  an  follows: 

,(1)  Ooaoval  Roloocoa.  to  Fahnestock,  Anion,  "nines  and 
Frail,  who  woro  th.o  responsible  1  rectors  in  tho  how  York  ~iiono- 
graph  Company,  . 

(2)  A  Conors 3.  loloaso  to  Tomlinson's  firm' and  ,-lsc 
tc  tho  individu"!  aonbors'  th.eroof. 

(5)  An • agroonont  not  to  bring  suit  or  to  stir  up 

1  have  indie: tod  on  th.o  payors  just  how  th.oy  arc  to  bo- 
signed,  and  11  of  thor.  rooiviro  to  bo  acknowledged  boforo  a 
notary  "ublio  at  Fort  Hyora,  or.oopt  tho  holeaso  to  fonlinoon'o 
firm.  I  havo  tried  to  make  .th.o  instv.-.cticr.s  regarding  tho 
ao knowlo  dgmont s  as  simple  as  possiblo,  and  if  tho  notary  . at  Fort 
!.!yors  is  a  man  of  ordinary  intolligonco  he  will  hero  no  diffi¬ 
culty  in  sooing  that  they  arc  onooutod  corrootly. 

If  you. have  any  objootion  to  one outing  thoso  papers, 
lot  no  know.  Of  courso,  thoy  would  not  ho  dolivorod  until  tlio  ' 
aottlomont  with  Hyman  was  actual  y  concumr.atod.  Wo  havo  alroady 
paid  our  monoy  and  nothing  noro  romains  to  bo  paid  by  us.  With  ' 
tho  sottlonont  of  tho  Hyman  mattor,  tho  IIow  York  litigation  ought 
to  bo  pratty  offootivoly  wound  up.  In  fact,  tho  only  thing  that 

3.  5/ 15/ 10.  NATIONAL  PHONOGRAPH  COMPANY  2  .  A.  EdiOOn. 

1  oan  dco  that  oon  ho  dono  would  ho  that  aono  minority  ctochholdor 
night  bring  an  notion  agoinot  Andoo  and  hie  aosooiatos  for  a  pro¬ 
portionate'  distribution  of  tho  nonoy  unlawfully  rotainod  hy  thon 
undor^tho  -Comp  contrnot,  hut  this  io  a  natter  that  wo  oro  not. 
■interest  od  in- 

Yours  very  truly, 




::'.r.  •  Cliontic  :i  r.or: , 

"c-.-t  t;  ,  i’Xorido. 

I  rend  with  a  Great  dor.2  of  ihtornrjt  your 
<-  I  nciga  c-  j  let'. or  of  the  ■>  ir.ct'.  .An-arostly  thcoe  do’  any  definite  ar.rr.ver,  c:-joo;t  yc.ur  note  on  the  mb.lect 

•  •yAavox’--.;}'.  and  tr'£od  hair  and  cotton  lint,  but  .tlAon.  tolls  no 

tbr.t  neither  ’I't.-rh-l.  would  nnevor  the  v-urpcco  be^feiiao  they  r;oro  . 
rov  cufiicicvhly  nbcorbent.  ui  nl  a  <■  u  a  Great  deal  of 
;:-.r  reels.  hV  t  for.-.c  nn  ortrcnely  lir.rO.  1:<i:od.  1 

Alien  if  ho  had  tided  infueor-l'  A  earth,  and  he  they  2ind 
hut  tj'.o  rooultin£j.  oonnooiticn  vno  too  brittle.  I  understand  tlidt 
infusorial  garth  is  very- absorbent'.  .  V.'o.uld  it  bo  poooiblo  in  your 
opinion  to  cot  btronGtli  by  uning  -infusorial .  oni-th.  and  oorao  fibro 
li’:o  cotton  lint?  .  ,  •  . 

?.cj;e.rdin£  cround  aobootoe,  Alien'  hob  not  triod  tliio, 
but  2ic  nill  do  -right  away  and  coo  Jiow-it  turns  out.  It  would  bo 
very  cood  .if  tjc  oould  uco- asbestos, .  bo.oauso  in  the  prior  art 
cohoBtoo  in  suGL'CStbdhas  a  for  this  purpooo. 

Yours  very  trvily, 

/J-\  . 


•;  :  ;  .  ■-  •  :r* 

:  1 


v/atj  also1  worth  a  good  deal  of  money;  and  I  agreed,  thoroforo,  to 
accopt  q  note  for  $-80,000,  nignod  by  henry  Dobson  and  ondorood  by 
Baboon  Bros.,  falling  duo  July  10th.  she  other  note  for  §68,000 
is  signed  by  Prod  Baboon  and  is  endorsed  by  Baboon  Bros. ,  and  falls 
duo  t&a^lOtli.  ■  She  reason  the  sooond  note  in  for  §80, 000.. instead 
of  §91,000  is  that  Honry  Baboon  agreed  to  as  sumo,  a  Chicago  adver¬ 
tising  bill  tor  §11,000,  which 'I  told  him  ho  could  hot  oxpoot  us 
to  pay  in  cash  in  view  of  tho  note  settlement.  Ho  also  agreed  to 
make  payment a  on  his  note  for  §00,000  at  tho  rate  of  §10,000  for 
this  wool:,  §10,000  no:rt  wool:  and,  if  possible,  at  least  §20,000 
a  month  afterwards  until  tho  note  falls  duo,  when  it  trill  bo  taken' 

up.  . 

Under  tho  circumstance s,  I  do  not  think  you  need  give- 
yourself  the  slightest  u -easiness  as  to  this  arrangement. 

Yours  very  ,mly, 

:/'■  ■ 


23rd  March,  1910. 

P..  L .  Dyer,  Esq.,  President, 

National  Phonograph  Company, 
Orange,  ir.  j. 

My  dear,  Mr-  Dyer:- 

•  niujxudc  xierewixn  one  of 

Detroit  books  ,  containing  their  plan  of  organisation.  This 
in  somewhat  more  elaborate  probably  than  would  be  required 
for  your  Companies  but  I  think  the  scheme  is  a  pretty  good 
one.  it  might  be  possible  .to  arrange  it  in  the  form  of  a 
chart  ,  rather  than  on  separate  pages  of  a  book.  if  you 
are  interested,  I  shall  be  glad  to  take  the  matter  up  with 
you  and  see  if  we  cannot  outline  a  chart  which  could  be  blue 
printed  and  distributed  to  those  whom  it  might  concern. 

Very  sincerely  yours, 



Ur.  Smith.: 


Hoplying  to  your  memorandum  of  tho  24th  inst . ,  iny 
personal  view  offhand  is  that  it  vzould  ho  unrrioo  for  us  to  file 
foreign  applications  on  Hr.  Aylsworth' 0  Condonaito  applications. 
Foroign  patonts  aro  ejcponcivo  to  maintain  and  vie  hr.vo  novor  made 
any  money  cut  of  them.  By  filing  foroign  applications  which  might 
issue  promptly  vie  would  giro  Hr.  Baekeland  a  Tory  good  opportunity 
of  seeing  just  what  v.e  aro  doing,  whoroas  it  might  ho  well  to  koop 
this  information  from  him  as  long  as  possible.  Furthermore,  I 
understand  from  you  that  thoro  aro  roforonoos  that  stand  mono  or 
loss  in  tho  way  of  scouring  Tory  broad  claims  on  2dr.  Ayls worth' s 
invention.  You,  howovor,  aro  in  position  to  give  hottor  thought 


to  tho  quostion  than  I  am,  and  if  you  do  not  agroo  with  mo,  lot 
mo  know  and  I  will  roconsidor  tho  matter. 

fld/i  mi 

F.  L.  D. 

Hard'.  26,  1910. 

Mr.  Thome  Edison, 

Tort  Jurors,  riorida. 

Doer  Hr.  Helicon: 

Your  pencil  fpjj^randun  hq$  been  received  in 
reference  to  the  announcement  by  the  r-rnphophonc  .Company  that 
tl'.oy  intend  to  use  point  a.  This  run  cvnc  ament  looked 
very  our. pi ci one  to  ns,  in  view  of  our  own  work,  and  J  suspect 
that  the  usual  led:  has  occurred,  although  X  have  not  the 
slightest  idea  who  is  responsible  tor  it. 

.■\o  con  ao  the  a.nnounconont  was  node ,  .1  in.;odi.toly 
cent  in  to  You  York  and  purchased  one  of  thooo  sc-oallod  diamond 
points,  which  was  represented  an  genuine  diamond  by  the  Colunbla 
peoplo.  It  tog  then  tinned  over  to  Mr.  fraphagen,  who  tells  no 
that  it  ic  not  a  diamond  hut  a  sapphire.  This  coonc  to  he  tho 
usual  Columbia  gene  of  trying  to  anticipate  an  in  every  way  and 
naking  aunouncononts  any  regard  to  tho  facts. 

Admitting  that  they  are  actually  worldng  on  diamond 
points,  which  they  nay  lator  on  bring  out,  tho  samo  thought 
occurred,  to  m  regarding  tho  possibility  of  our  being  embarrassed 
by  a  suit.  I  do  not  tliink,  however,  that  they  could  bother  us, 
cf  r  tho  roason  our  claims  on  tho  diamond  point  are  in 

12  ■  5/ss/lQ. 


combination  v;ith  a  record  mt.-rlr.12jr  Harder  then  celluloid 
end  iwofomlJly  v/it3i  a  hoavy  vioSjM-  V/it3i  t3io  Indoctr- otiblo 
record,  celluloid,  el  course,  io  used  and  a  comparatively  Utfit  * 
™lcht\  n  aoom  lo  !no  ««•-*  aancoo  of  the  di  nond  re 

not  fully  realised  with  tho  oolluloid  record,  booauco  a  oa.rthiro 
onsv/oro  substantially  for  ell  practical  purposos.  Unloss  fno 
clnirio  are  limited  in  come  ray,  I  thirir  it  vorjr  improbable  that 
m°  rotoat  rtU  over  bo  Granted,  end  even  v/hon  co  limited  the 
ouonticn  is.  vory  doubtful,  because  diamonds  Havo  been  sucsootod 
®°  ."possibly  capable  of  uec  in  tide  art. 


3ftnu?0  very  truly. 


Your  pencil  memorandum  has  been  received  in 
reference  to  the  announcement  hy  the  Graphophonc  Company  that. 


v  Mr.  Dyer: 

The  cash  requirementsH^or^^Mf^laboratory  during  the  month 
of  April  will  ha  $110,500.00,  which  includes  $50,000.00  for  the 
Edison  Portland  Cement  Co.  During  month  of  March  we  took  care  of  the 
following  outside  interests: 

Edison  Storage  Battery  Co.  to  the  extent  of  37,500.00 

laboratory  for  Pay  Rolls  &  acots.  to  the  extent  of  16,000.00 

Edison  Portland  Cement  Co.  to  the  extent  of  50,000.00 

The  lansden  Co.  to  the  extent  of  3,500.00 

A  total  of- . - .  $107,000. 00 

In  order  to  do  this  we  were  compelled  to  hold  up  $63,800.00 
of  our  regular  and  discount  accounts;  in  addition  to  this  we  are 
holding  up 

Calkins  6s  Holden  25,199.95 

Riebecksche ”  8,700.00 

Qotthelf  Heimann  6,252.65 

Rutgerswerke  10,064.34 

Eastman  Kodak  Co.  15,000.00 


Making  a  total  of  T^OTCTTOIT 

Eor  the  coming  month  I  estimate  we  will  require 
for  Pay  Rolls  220,000.00 

for  Accounts  150.000. 00 

A  total  of  - —  $499,000.00 

As  near  as  I  can  now  estimate  cash  receipts  will  be  about 
$400,000.00,  so  that  according  to  these  figures  we  will  be  short 
about  $100,000.00  for  our  own  requirements ,  without  considering  the 
laboratory  and  Cement  Co*s  needs.  The  only  solution  to  the  problem 
is  to  put  .ourselTsa  back  on  a  60  day  basis.  We  now  haws  paper  dis¬ 
counted  with  the  different  banks  as  follows: 

No*.  2. 

Natl.  Co. 

Ed.  Mfg.  Co. 

Union  Natl. 


No.  Ward 

2nd  Natl. 


If  the  notes  disc  ounted  hy  the  Camant  Company  do  not  intarf ara 
with  our  cradit  wa  would  ha  entitled  to  further  oradit  from  tha  hanks 
as  follows: 

Union  Natl. 
Natl.  Co.  65,000.00 

Ed.  Mfg.  Co.  100,000.00 

A  total  of  $180,000.00 

No.  Ward  2nd  Natl. 

5,000.00  5,000.00 

— .  5,000.00 

Tha  North  Ward  and  Saoond  National  Banks  have  exprassed  tham- 
salTaa  as  dissatisfied  with  our  accounts,  and  I  douht  whether  they 
would  he  willing  to  extend  further  credit;  so  at  tha  present  outlook 
wa  would  have  to  look  to  tha  Union  National  Bank  for  any  further 
favors.  If  wa  do  this,  and  taka  care  of  tha  outside  interests  we 
ara  going  to  find  ourselves  at  the  end  of  April  in  the  same  financial 
condition  that  we  are  in  at  present— unahle  to  take  care  of  our  own 
accounts  without  issuing  notes  which  would  he  detrimental  to  our 
credit  just  now. 

vc  Yours  respectfully. 



TAt,  -W. 

Harcli  fr,  1010. 

Mr.  fflionan  A.  Edison, 

Port  Myers,  Florida, 

3Ms  lottor  rocjulroc  very  careful  consideration 
hy  you  and  urgent  action.  It  relates  to  financeo. 

Jmi-inu  the  no  nth  cl  March  tool:  care  or  fee  follow- 
lss  outside  interests: 

Storage  -jl.'u vo r  y  oo .  •  MV  ,  MOO 

La'uoratcry  ( for  nay-rolls  arid 

accounts :  10,000' 

•ortlanu  Cement  Co.  00,000 

lancdon  Co.  s,goo 

lots!  ■  .'•,''.107, 000. 

In  order  to  Me  this  v;o  ’.Tore  oenpoinod  to  held  up 

MOO ,000  in  oar  rcjnlar  and  discount  accounts  nnyatslo ,  and  in 

addition  to  this  -re  are  nor?  holding  up  irregular  uecounto  {in- 
cludin;;  Cnlirinr:;  Holden,  Montan  V'c::  and  Eastman  Modal':  Co.  ) 
argentine  to  §65,216.94,  cr  ay -.vorzlrr.tcly  §150,000  all  told. 

In  holding  ,up  a  discount  account  wo  of  •course  lose  money,  end 
in  holding  up  Other  accounts  re  to  a  certain  extent  hurt  'our 
future  credit  with  these  people. 

For  the  nonth  (April)  wo  estimate  that  wo  will 

The  earthquake  and  other  circumstance 
draw  from  the  handling  of  the  Edison 
and  I  am  happy  to  say  that  my  entire 
will  be  covered,  with  interest.  Your 
trusted  me,  and  for  -feery  large  amount 

s  have  obliged  me  to  with- 
goods  in  a  wholesale  line 
indebtedness  to  your  Company^jj* 
people  have  at  all  times  ’JjL. 
s  at  that,  and  I  have  proved 

faithful  to  my  trust. 

I  am  proud  to  know  that  I  have  been  instrumental  in  building  up  an 
excellent  Edison  business  on  the  ■pacific  Coast,  where  nobody  would 
take  hold  of  it  at  the  time  I  started  in;  it  was  considered  a 
street-faking  business.  I  believe  that  the  large  trade  which  your 
Company  now  enjoys  in  Australia  and  South  America  was  built  up  by 
myself.  I  am  sorry  to  say  to  you  that,  after  40  years  of  hard 
work,  it  is  my  belief  that  when  X  have  settled  all  my  accounts,  I 
will  have  nothing  at  all  left,  although  I  can  say  with  satisfac¬ 
tion  that  I  have  enjoyed  my  life  as  t  went  along.  I*-think  I  have 
had  everything  that  is  coming  to  me  and  have  no  regrets.  I  have 
helped  a  great  many  people  to  get  along  and  make  money,  carried  a 
heavy  family  load  and  done  it  with  pleasure. 

I  still  hold  you  to  your  promise  to  allow  me  to  show  you  San  Fran¬ 
cisco.  It  does  not  make  any  difference  whether  I  am  a  wholesaler 
or  not,  I  know  every  street  and  alley  and  every  place  that  you 
would  like  to  see. 

I  have  met  in  San  Francisco  quite  a  number  of  peo  pie  who  handle 
Films  and  have  been  reading  the  Film  papers  and  firmly  think 
there  is  going  to  be  one  grand  bust-up  in  the  way  the  Film  busi- 


/^aiTa  'i  mm  A 
I  0161  si  ddV  | 

. . ~y~\ —  • 

■t  It  UJ  Jo  csto  6 

cfee*-^  \^0-L.  tn. 

4-  u>  C-'.j  1A  cTIw-t* 


^rTG^ u*w  fcO-e^y 



ness  is  handled  on  the  Coast.  People  are  not  as  loyal  to  you  as  I 
have  been  and  if  the  time  does  come  when  your  Company  wants  a 
good,  honest  representative  I  offer  myself  -  although  a  little 
aged,  still  in  the  ring.  X  have  the  personality,  friendship  and 
connections  and  would  look  out  for  your  interests  better  than 
anybody else  you  could  select  here.  Please  dpnt  forget  me  when 
the  time  comes.  I  know  j  have  a  friend  in  you  and  that  you  will 
remember  me  should  the  occassion  offer. 

T  wish  to  thank  you  no w  for  many  favors  I  have  received,  which, 
while  not  direct,  I  know  came  through  you.  I  assure  you  I  appre¬ 
ciate  them  and  can  never  forget  them. 

T  will  still  handle  Edison  Phonographs  and  Records  in  a  small  way 
as  a  retailer  for  a  while  at  least. 

With  kind  regards  and  well  wishes,  I  am, 





and  stock  as^olSler^in  mson^Sines^Recor^  °Ar  800d-wm  ' 
Supplies  to  the  r.acnines,  Records,  Accessories  and 

Pa0lf£LP£onosraph  Company, 

941  Market  Street 

to  take  effect  March  16,  1910, 

that  date!'*  0?dSr?J«fnf  }n°3S”  *tZ  §*ven  us  up  to 

April  Records  will  be  filled  bv  L  ^S°  standing  orders  for 


fivorsWienPthe°past°  °andbagainitha^inf yo'^for 

Yours  truly, 


National  phonograph  company 

Fir.  Ehomao  A.  Edison, 

Fort  Uyors,  Florida.. 

Scar  :ir.  Edison: 

I  an  Just  leaving  with  YTllson  for  Schoncetauy 
to  go  through  tho  Gonoral  Electric  plant  and  coo  what  Find  of  a 
sycton  thoy  have  thoro . 

Elio  situation  as  to  finances ,  so  far  as  I  havo  Soon 
ablo  to  go,  is  at  tho  pros ont  tine  as  follows: 

Xi/.30FAE  OF.Y 

\7or3:  has  Soon  stopped  on  the  20  nickel,- filling  maehinoc. 
Ehio  ought  to  reduce  oxponso,  because  Fachnan  tolls  no  that  practi¬ 
cally  his  force  has  Icon  working  on  this  Job.  If  ho"  does 
not  let  some  of  his  non  go  to  reduco-  oirpenno,  it  will  at. least 
holp  out  Schiffl  vory ■  materially ,  because  Schiffl's  work  has  ncorun- 
ulatcd  to  a  largo  cy  trait  ail 'part  of  j.t  is  being  done  down  horo. 


I  tun  glad  you  agree  to  a  discount  of  20$  to  manufactur¬ 
ers.  .Shis  ought  to  make  the  proposition  very  interesting  to  thorn, 
and  Foe  is  oven  moro  optimistic  than  usual.  Ho  scons  to  think 
that  10$  discount  to  GaragoS  will  be  onough  to  satisfy  .thorn.  At 
least,  wo  can  start  out  with  this  discount  and  if  necessary  in¬ 
crease  it  lator.  It  would  ho  more  difficult  to  re.itco  tho  dis¬ 
count  to  10$  if  wo  onco  started  at  15$  than  to  roverse  tho  pi-o- 

2  4/13/  10.  NATIONAL  PHONOGRAPH  COMPANY  T  •  A.  lOlilOOll. 

cods.  Both  Dodeo  and  Boo  strongly  oppose  roduoinc  tho  output  to 
700  oclla  pox-  wool:  fox’  tho  following  reasons: 

.(1)  Tho  rnnuf  act  urine  oost  would  ixioroaco  so  that 
tho  hattorioo  would  havo  to  ho  sold  at  an  actual  loss.  By  nahinc 
1400  colls  per  wool:,  tho  cost  Is  low  onov-Gh  to  coll  practically 
without  loss,  even  though  tho  c00do  sell  slowly.  At  loast ,  the 
situation  can  run  on  until  you  rotum.  V/o  arc  oinply  aocunulat- 
1 ne  a  stool:  of  salable  c00^  on  which  a  profit,  or  at  the  worst 
a  very  snail  loss,  will  ho  nado. 

(2)  By  outtinc  down  tho  output  v/o  would  havo  to  lot 
non  g°  who  havo  had  onpox-ionoo  and  who  ai’o  of  value  to  us,  and 
later  cn  if  tho  output  was  increased  wo  would  have  to  broad:  in 
net/  non.  This  would  bo  oupcncivo . 

(3)  To  cut  down  tho  output  and  lot  non  c°  v/onld  havo  a 
bad  offset  in  tho  trado ,  and  tlio  Load  pooplo  would  no  doubt  oir- 
culato  tho  old  otorios  that  sonothinc  uas  tho  raattor  with  tho 

Kf- icon  battopy. 

Vdxon  I  sorioucly  bocan  to  ccncidor  tho  ouoction, 
realising  that  v/o  v/oro  mckinc  salable  goods  and  ac oumulat inG  then 
in  stool:,  it  occurred  to  no  that  tho  Battery  Company  oucht  'o  bo 
able  to  finanoo  itsolf,  without  lo oleine  to  tho  ?honoeroph  Conpa- 
nios  for  help.  I  have  taken  up  tho  nattor  with  tho  Orango 
national  Bank  and  have  explained  tho  nattor  to  thorn,  and  they 
havo  acrood  to  loan  tho  Storaco  Battery  Company  §30,000  on  its 
notes  endorsed  by  you.  Shis  oucht  to  carry  tho  Dattory  Company 
for  oorno  tino.  If  wo  find  t'nat  this  is  not  onouch  thoy  will  bo 
villinG  to  loan  §30,000  moro  on  tho  notos  of  ono  of  tho  other 
compnnios  ondorsod  by  you.  Undor  this  nrrancomont  tho  drain  of 
tho  Battory  Company  on  tho  Phonograph  Companies  win  bo  rornovod. 

3.  4/lS/lO.  NATI ONAL  phonoGraph  company  2.  A.  Udiaon. 

With  tho  osb  ro  diacounta  v;o  am  of  ferine  and  tho  advor- 
•bieixte  v/o  arc  doinc,  and  tho  inoroooo.  in  intoroot  of  tho  public 
in  tho  battorioa,  thoy  ought  !.o  bocin  novine  by  tho  tino  thcao 
croditB  arc  ordiauatcd.  Wo  aro  rocoivinc  fairly  c°od  Shipping 
ordoro  and  Boo  nan  tho  Adana  E:-mrosn  people  and  thoy  Kill  give 
ox-dors  to  ahip  2600  colla  probably  thin  nook.  In  other  reapocts 
Dodge  undex-at suds  tho  cit nation  and  v.-ill  naho  every  effort  to 
i-un  alone  ao  caonomically  aa  poaaiblo. 

CE'.I':;ig  COiPAITY 

I  have  had  a  number  of  talks  v/ith  Mr.  Mo-llory  and  3iavo 
ouplaincd  tho  situation  to  lain.  He  tolls  no  that  the  roaaon  for 
thoir  hoayy  denands  for  April  ia  that  in  March  their  coal  and 
freight  bills  wore  unusually  high  owing  to  tho  thx-oatonod  atriho . 

Ho  roeards  conditions  oo  boi'iig  very  encouraging,  hut  v/ill  cut 
do-,  n  osponoo  to  a  minimum  and  nillslon  up  on  tho  work  at  tho 
Haub  Quarry.  Hov;  effectively  ho  will  do  this  I  oannot  cay,  hut 
at  least  this  situation  can  wait  until  you  return. 


In  order  to -Garry  us  through  tho  Sunmor  Mr.  Millor  and 
Mi',  ifbetoo  both  think  that  unloss  tliox-c  is  .--ono  unforosoon  improve¬ 
ment  v©  may  nood,  aa  much  ac  .$400,000.  :  .  Mr.  Solxooror  of  tho  Union, 
national  Bank  told  us  that  lie  boliovod  bnnl:ing  arrangements  could 
bo  made  in  Hov/  York  to  socuro  tiiis  aoconnodation,  and  ho  suggested 
going  to  tho  national  City  Bank,  v/hoso.  poonlo  ho  known,'  and  sound¬ 
ing  thorn  on  this  matter.  •  ilo  has  not  yot  don©  this,  but  promises 
to  do  ao  to-day.  His  idoa  nao  that  hy  putting  up  collateral  for 
$200,000,  a  largo  Bank  nould  loan  uo  $200,000  noro  on  tho  Company's 
notoe,  hut  v;3iot3ior  a  lion  York  Bank  v/ould  accopt  Phonogi-aph  Works  •  - 

4  4/13/  10  .NATIONAL  PHONOGRAPH  COMPANY  '!' •  S'—  EdlBOXl. 

■bonds  ao  collateral  I  do  not  Jsiov;.  Unlooo  a  financial  oataolism 
ocourn,  I  do  not  ace  how  v/o  oan  fail  to  obta'n  ouch  acoomno elation  • 
ao  v/o  may  nood,  particularly  oinco  wo  will  ho  uoinc  tho  nonoy  to 
pnodhcaosalablo  goods  which  will  ho  cold  in  tho  Pall.  Our 
ontiro  haul:  loans  (ozolusivo  of  tho  Cement  Company's  notoo)  aro. 
loss  than  $800,000,  and  tho  combinod  surplus  of  the  various  com¬ 
panion  is  upwards  of  $5,500,000. 

330112)  ISSUE  . 

It  sooms  to  mo  that  tho  solution  of  our  financial  prohlon 
is  to  issuo  about  a  million  dollars  in  bonds  aftor  all  tho  com¬ 
panies  aro  consolidated.  ■  This  would  allow  us  to  taJ:o  up  all  of 
our  loans  and  provide  a  sufficient  working  capital.  ,  LIr.  Sohooror 
told  us  that  on  tho  strength  of  our  financial  ‘showing  thoro  ought 
not  to  ho  aiiy  difficulty  it  all  in  soiling  a  million  dollars  in 
bonds  at  not  loss  than  90.  Elio  bonds  could  bo  rodoomod  in 
contain  amounts  oach  yoar  so  as  to  gradually  roduco  tho  issuo, 
and  thoro  could  bo  a  provision  that  at  any  timo  they  could  bo 
rodeemod  by  lot,  cay  at  105  and  accrued  into root,  so  that  thoy 
could  all  bo  wipod  out  if  noccssary.  Dy  doing  this  v/o  would  bo 
absolutely  independent'  of  tho  Banks  so  far  as  working  capital 
is  concomod.  • 

Thoro  v/ill  bo  no  nood  of  your  coming  back  boforo  you 
plannod,  hocauso  I  fool  suro  that  everything  will -go  along  all 
right.  ■ 


Yours  vory  truly. 

Dyer:  4/26/10. 

As  it  is  settled  that  wo  will  go  ahead  with  the  new  record 
without  feed  lino  in  the  center,  the  following  questions  come  up 
and  should  he  decided  without  delay,  00  that  the  Recording  Plant 
can  start  the  catalogue  and  we  can  start  making  moulds : 

(1)  What  will  he  the  dividing  line  as  to  the  clasB  of 
selections  to  ho  put  on  the  10”  and  13”? 

(2)  Assign  hlooks  of  catalogue  numbers  covering  differ¬ 
ent  languages  as  well  as  price,  loaving  the  numbers  1  to  5000 
unassignod,  for  factory  to  number  the  mother  moulds. 

(3)  What  class  of  records  will  bo  double  side  records? 

(4)  What  will  bo  the  design  of  label?  Chat  is,  will 
it  carry  the  restriction  notice  or  not?  3hall  wo  use  a  picture 
on  it  or  not?  Will  the  price  bo  on  tho  label? 

(5)  Shall  we  uso  different  colors  for  different  price 
or  for  different  class  or  for  different  size  only? 

In  order  to  bring  before  you  a  line  of  thought  to  work 
on,  I  would  suggest  answors  to  the  following  questions  as  follows: 

(1)  All  solections  made  by  ordinary  talent  to  be  made 
on  10”,  all  others  on  12”,  thereby  malting  the  12”  record  one  of 
quality  as  regards  the  music  contained  thereon. 

[3t)  10" 

5000  to  15000  American 
15000  to  18000  British 
18000  to  20000  German 
20000  to  22000  Crouch  and  Bengian 
22000  to  26000  Spanish  (Including  Mexiaan,  Cuban 
Argentine ,  etc . ) 

26000  to  26500  Italian 
26500  to  27000  Hebrew 
27000  to  27500  Swedish 
27600  to  27760  Bohemian 

27750  to  30Q00  Miscellaneous  (Banish,  ITorwegian, 
Butch,  Hungarian,  Polish,  Chinese, 
Japanese,  Hawaiian). 

30000  to  40000  12"  Hot  Grand  Opera 
40000  up  121'  Grand  Opera. 

(3)  All  selections  by  ordinary  talent,  but  when  copyright¬ 
ed  selections  are  used  the  reverse  side  should  be  trum*  ono  not 
copyrighted.  All  12"  not  Grand  Opera. 

(4)  Matter  for  Legal  Bepartment  to  decide. 


is,  one 

(6)  Ubo  different  colors  for 
color  for  Grand  Opera  and  anothe 

different  class  only — that 
r  color  for  all  others. 

sffs&fsw&j:  srL£.«“  *«  -*2fa  sa* 

E.  i.  Alton. 

April  2G ,  1910. 

Ur.  Potor  Bacigalupi, 

941  Market  St . , 

San  Francisco,  Cal. 

Door  Ur.  Bacigalupi: 

Yours  of  the  2nd  inst.  to  Ur.,  Edison  has  toon 
roforrod  to  mo  after  ho  had  ondorsed  there  on  an  answer,  which  J 
pro aunc  was  cent  you  by  hie  Secretary. 

In  the  winding  up  of  our  relatione  with  you  ao  a  job¬ 
ber  I  was  -in  constant  touch  with  the  matter,  and  I  can  assure  you 
that  we  did  all  that  wo  could  to  help  you  consistent  with  what 
wo  thought  to  bo  our  responsibility  to  Ur.  Edison.  "Personally 
I  do  not' know'  you  .very  .troll,-  but  1  havo  found  that  you  have  many 
friends  hero,  all  of  whim  ontortuin  for  you  foo lings  of  apprccia- 
.  tion. 

Our  representation  on  the.  Pacific  Coast' co  far  as  films 
aro  oonoorned  is  enito  satisfactory  and  I  think  wo- aro'  getting  our 
share  oftho  business.  I  would  not  bo  disposod  to  change  unless 
I' was  shown- that -the  facts  woro  othorwiso.  If  you  will  write  . 
mo  more  in  dotail  as  to  onset ly  what  you  have  in  mind  and  what 
you  would  propose  to  d-  ,  I  will  give  tho  matter  caroful  consider¬ 

Beliovo  mo  always,  . 


Yours  very  truly, 


i  n  e  g  a  a  k, 

Hay  3,  1910. 

lieutenant  Ernest  H.  Shaokleton, 

Indianapolis,  Indiana. 

Vlotor  Talking  Machine  Company  of  Camden,  Hew  Jersey, 
announce  a  Record  made  by  you,  of  your  South  Pole  trip,  to  go 
on  sale  with  their  June  Records.  Ihi3  is  contrary  to  our 
exclusive  arrangement  with  you. 

Kindly  advise  us  by  wire,  followed  by  letter,  so  that 
take  stpps  to  protect  ourselves. 


we  may 



Copy  to  Mr.  Dyer. 

-  Aj 





Kay  6, 


Honorable  Ernest  H.  Shackleton,  * 

^Ghieggo,  Illlno^sv.  | 

Sir:  *7^' 

Your  kind  letter  following  a  telegram,  in  reference  to  the  special 
Record  you  made  for  us,  is  at  hand,  ana  we  have  sent  you  another  wire, 
reading  as  follows: 

"Before  Record  is  marketed  here  by  Victor  Talking  Machine  Company, 
Camden,  Hew  Jersey,  kindly  write  them  voicing  your  protest.  Advise 
us  if  they  agree  to  withdraw  Record.  Think  you  should  telegraph  them 

We  believe  that  if  you  have  taken  this  matter  up  with  the  Victor 
Talking  Machine  Company  and  the  Gramophone  and  Typewriter  Company,  ltd. 
of  London,  steps  will  be  taken  to  withdraw  the  Record,  or  recompense 
us  in  some  way  so  as  to  relieve  this  Company  of  the  embarrassment  of 
having  advertised  our  exclusive  arrangement  with  you.  We  are.  very 
glad  to  have  your  assurances  that  the  doubtful  enterprise  of  our  com¬ 
petitor  is  wholly  unauthorized,  and  we  believe  that  the  matter  should 
be  of  enough  Importance  under  the  circumstances,  for  you  to  insist 
upon  their  stopping  the  sale  of  the  Record. 

Hon.  E.  H.  Shakleton, 

Kay  5,  1910, 

Pago  2. 

Vte  slnoerely  regret  that  anyone  ongagefl  In  our  line  of  manufaotur/>v^. 
either  In  this,  or  any  country,  ah ouia  violate  the  oonfiaonoo  of  no 
aistlnguiehea  ana  worthja  person  as  yourself. 

7/e  hog  to  remain. 

Very  rospeotfully  yours, 

She  following  statoment  covering  onr  advertising  for  1909-10  has  hoen 
prepared  for  the  puipose  of  discussingadvertising  plans  for  1910-11.  It 
is  somewhat  difficult  to  make  comparisons  and  to  give  exact  figures,  be¬ 
cause  it  hns  always  boon  our  custom  to  consider  our  advertising  year  as 
beginning  with  the  October  magazines,  bringing  part  of  our  advertising 
expenditures  in  one  fiscal  year  and  part  in  the  next;  and  the  only  figures 
we  have  are  those  given  by  our  department  record  of  bills  approved  by 
the  department. 

Our  department  reoords  show  that  during  the  fiscal  year  1909-10  we 
incurred  expenditures  and  approved  bills  for  the  following  amounts,  which 
are  the  items  that  may  be  considered  as  advertising  and  do  not  include 
expenses  incurred  for  other  departments: 

Magazine  Advertising 
Newspaper  Advertising 
Farm  Paper  Advertising 
Religious  Paper  Advertising 
Trade  Paper  Advertising 
Outdoor  Advertising 
Bahson  Bros. 

Printing,  Postage,  Etc. 

Newspaper  Advertising 
Religious  Paper  Advert! si 
Trade  Paper  Advertising 
Outdoor  Advertising 
Babson  Bros. 

Printing,  Postage,  Etc. 

58,000.00  '  ^ 

2,000.00  '  <■><■ 

G, 600. 00 

24,000.00  .'V*  ^ 
45,000.00  '  1 
1S5.000.00 _ 

Tho  item  of  newspaper  advertising  is  part  of  the  present  season’s  cam¬ 
paign.  The  estimate  really  makes  no  provision  for  newspaper  advertising  next 

The  item  for  outdoor  advertising  is  larger  because  of  the  contract  we  have 
made  for  tho  "Leaders  of  the  ',7orld"  electric  sign  on  Herald  Square. 

Tho  Babson  Bros,  is  larger  because  of  the  increased  allowance. 

7/e  may  be  able  to  make  a  saving  in  tho  cost  of  printed  matter,  for  allow¬ 
ance  is  made  here  for  some  special  Grand  Opera  printing  not  dome  last  year. 

For  instance,  we  have  iii  contemplation  a  catalogue  that  will  cost  from  $5,000 
to  v5 ,000,  according  to  the  size  of  the  edition. 

.Our  business  in  the  United  States  in  1909-10  was  approximately  $3,070,000. 

If  our  total  expenditure  for  advertising  and  printing  were  kept  within  ten  perceitt 
of  the  total  volume,  as  you  suggest,  we  would  have  .*507 ,000  availabe  for  this 
purpose.  Deducting  the  above  estimate  from  $307,000  leaves  $67,000  avilable 
for  magazine  advertising  for  the  entire  fiscal  year. 

X  think  that  it  will  be  unwise  to  reduce  our  magazine  advertising  from 
$125,000  to  $67,000.  To  do  so  will  bo  to  make  on  admission  to  the  trade 
and  tbo  public  of  the  state  of  our  business  that  could  liardly  fail  to  make 
matters  worse.  It  will  not  be  easy  to  explain  why  wo  have  decided  to  drop 
out  of  newspapers  entirely.  It  will  bo  almost  suicidal  to  show  the  white 
feather  in  magazine  advertising.  Bear  in  mind  that  while  the  Babson 
advertising  costs  a  considerable  sum,  our  regular  businoss  gets  no  credit 
for  it  from  either  the  trade  or  that  part  of  the  public  that  compares  tlB 
advertising  dono  by  the  Victor  Company  and  us. 

Our  $07,000  would  be. compared  to  the  following  expenditures  by  the 
Victor  Company: 

Magazine  $125,000 

newspapers  75,000 

Farm  Papers  25.000 


These  are  about  their  expenditures  for  1909-10  and  unless  they  also  de¬ 
cide  to  retrench  they  v/ill  spend  as  much  in  1910-11, 

The  least  that  we  ought  to  spend  for  magazine  advertising  is  $100,000 
which  would  run  our  total  up  to  $340,000.  I  greatly  regret  that  we  cannot 
go  on  with  newspaper  advertising.  I  admit  that  itdid  not  bring  the  in¬ 
creased  business  in  19(59-10  that  we  had  hoped,  and  had  ever  reason  to  ex¬ 
pect,  but  I  believe  that  its  partial  failure  was  due  more  to  the  hard  time 
than  to  the  weakness  of  the  advertising.  As  you  know,  our  Jobbers  and  Dealers 
are  apathetic  and  discouraged  because  business  is  so  si  or;  in  returning, 
and  if  they  find  us  timid  and  distrustful  of  the  future  their  feelings  will 
be  aggravated.  Of  course,  if  the  profits  v/ill  not  permit  such  heavy  expend! - 
turesfor  advertising,  we  must  cut  down  and  do  the  best  v/e  can  regardless  of 
unfavorable  comparisons  or  the  effect  upon  thetrade. 

In  tho  foregoing  I  have  made  no  allowanoe  for  any  advertising  or  print¬ 
ing  that  may  be  necessary  to  exploit  the  n ew  product,  nor  for  any  special 
advertisings  push  Grand  Opera  Records. 

.  I  had  also  hoped  that  at  least  $10,000  additional  might  be  had  for  trying 
out  a  plan  of  getting  out  a  greater  variety  of  printed  matter  for  trade  use 
and  of  giving  our  good  dealers  a  more  direct  and  more  efficient  service  in 
connection  with  it. 





National  Phonograph  Co., 

Orange,  II. J. 


We  notice  that  in  your  "Phonograph  Monthly" 
for  May,  you  announce.  .Shuc’kL et on  1  a  exclusive  services,, 
stating  that  "he  has  agreed  not  to  recite  his  experiences 
in  the  South  Pole  region  on  any  other  talking  machine 
record. " 

We  fear  that  we  have  reversed  the  "Lauder" 
incident  in  this  case.  We  are  issuing  ShacKLeton's 
records  in  our  Jtine  supplement. 

Lieut.  Shaokleton's  Manager,  Mr.  Reid, 
of  Regent  St.,  wrote  Shackleton  on  May  10th,  from 
London,  reminding  him  of  permission  given  The  Gramophone 
Co.  to  issue  his' record  for  public  sale.  The  Gramophone 
Co.  have  witnesses  to  the  agreement. 

Lieut.  Shackleton  telegraphed  us  from  Toledo 
0.,  on  May  6th,  as  follows: 

"You  have  no  authority  to  put  record  on  sale. 

Only  firm  National  Phonograph.  Distinct 
understanding  in  London  record  made  not  for 
public  sale.  Shackleton." 

We  presume  this  telegram  was  sent  at  your 


We  are  addressing  a  letter  to  Lieut* 
Shackleton  in  your  care,  which  you  will  please  forward 
immediately  to  his  address,  as  we  are  not  in  possession 

May  16,  1910, 

Victor  Talking  Machine  Company, 

Camden,  Hew  Jersey. 


V/e  duly  received  yours  of  May  12th  in  reference 
to  our  advertising  the  Shackleton  record  as  exclusive,  and 
v/e  have  forwarded  the  letter  enclosed  therein  to  Lieut. 
Shackleton,  as  yo\}  desired. 

We  have  Lieut.  Shaokleton’s  assurance  over  hiB  own 
signature  that  the  records  he  has  made  for  us  are  the  only 
talking  machine  records  ever  made  for  public  sale,  and  that 
•he  agrees  to  make  records  for  public  sale  hereafter  only  for 
us.  'fhiB  statement,  we  believe,  furnishes  us -with  a  perfect 
foundation  for  our  assertion  that  Lieut.  Shackleton  "has 
agreed  not  to  recite  hiB  experiences . in  the  South  Pole  re¬ 
gions  on  any  other  talking  machine  record".  Indeed,  it  ap¬ 
pears  to  ub  that  we  might  have  gone  much  further  and  have  . 
said  that  our  records  were  the  only  talking  machine  records 
which  Lieut.  Shackleton  had  ever  made. for  public  sale.  Under 
the  circumstanoes „  we  expect  to  make  further  allusion  to  • 
having  exclusive  privileges  on  the  Shackleton  record. 

Lieut.  Shackleton  has  Btated  to' us  in  writing  that 
the  reoord  which  he  made  for  the.  Gramophone  people  in  London 
is  not  for  public  sale,  and  we  note  that  Lieut.  Shackleton 



Victor  Talking  Maohine  Company. 

has  also  notified  you  to  the  same  effect.  We  presume  that 
you  will  not  question  the  honesty  of  Lieut.  Shaakleton,  and 
it  would  seem  to  us  that,  in  deference  to  his  belief  that 
the  record  made  in  London  was  not  to  be  offered  for  public 
Bale,  you  should  withdraw  it  from  the  market. 

Yours  very  truly, 

CHW/ARK.  General  Manager. 

Messrs.  Dyer,  Wilson,  Westee  and  Buehler:- 

X  understand  that  the 

arrangement  we  have  with  Mr.  Shackle ton  is  that  we  pay  him  a  royalty 
of  2^  on  his  record  made  for  us  some  time  ago,  and  that  he  would  not 
make  any  similar  records  for  any  other  company  on  this  subject.  He 
explained,  however,  that  the  Gramophone  Co.  had  already  made  a 
record  by  him  which  he  said  was  not  to  be  used  for  commerical 
purposes,  but  was  to  be  filed  in  one  of  the  museums.  He  also 
stated,  however,  that  should  this  record  be  used  for  public  sale 
he  would  forfeit  to  us  the  2%  royalty.  This  record  has  been  listed 
by  the  Gramophone  and  Victor  companies  and  has  been  on  public  sale, 
so  we  need  not  pay  him  the  2$>  royalty.  This  is  the  arrangement  I 
understand  Mr.  Dyer  made  with  him. 

W.  H.  Miller. 

r;- F' sr-uu- 

(Goflinpaxmty  . . ~~ 

CAMDEN,  n.j.u.s.a.  May  27,  1910. 

national  Phonograph  Company, 
Orange,  II. J. 


Replying  to  yours  of  May  .16th,  heg  to 
state  that  v/e  cannot  reply  to  you  as  satisfactorily 
as  we  would  like  to,  for  the  reason  that  our  letter 
sent  to  Lieut.  Shackleton,  in  your  care,  was  returned 
to  us.  V/e  have  re-forwarded  it  again,  hoping  it  may 
find  him. 

V/e  heg  to  state,  however,  that  there  is  no 
question  whatever  hut  that  Lieut.  Shackleton  gave  per¬ 
mission  to  The  Gramophone  Co.  to  issue  his  record  for 
sale.  This  they  did  hy  circular  on  August  20th.  They 
also  advertised  the  fact  in  the  press. 

What  Sir  Ernest  is  prohahly  thinking  of 
is  that  when  he  made  the  record,  he  stipulated  that 
it  should  not  he  issued  until  after  he  had  lectured 
(if  our  informant  remembers  correctly)before  the  King 
and  before  "The  Royal  Society." 

There  was  also  a  question  of  a  public 
subscription  being  raised,  and  he  was  Bhy  of  having  the 
Gramophone  record  issued  at  that  time;  there  was 
always  an  understanding  that  it  could  be  brought  out  a 
little  later  on. 

V/e  have  witnesses  in  both  our  representative 
and  Mr.  Shackleton's  representative  of  the  permission 
given  to  publish  the  record. 

Under  these  circumstances,  we  must  refuse 
to  withdraw  the  record  from  the  market,  and  you  will 

Co. “Folio  //■  2  IT.  P.  Co. 

certainly  place  yourselves  in  a  ridiculous  position 
hy  further  claiming  or  advertising  your  exclusive  rights 

As  stated  in  our  former  letter,  lieut. 
Shackleton ' s  agent  has  written  him,  and  we  incline  to 
the  opinion  that  he  will  correct  his  position  with  you 
upon  receipt  of  that  letter,  as  -well  as  our  o wn. 

Yours  very  respectfully, 


c/o  Hotel  Gotham, 

How  York  City. 

Juno  2,  1910. 


Doar  Sir: 

Furthor  roforring  to  tho  question  of  our  having  oscluslvo 
rights  to  tho  oalo  of  your  roeorda  in  this  country,  wo  hog  to  onoloso 
horowith  copy  of  lottor  rocolvod  from  tho  Victor  Talking  Moohino  Co . , 
datod  May  27th,  whioh  will  osplodn  itoolf ,  and  inform  you  as  to  tho 
position  thoy  tdko  in  tho  matter.  Won't  you  kindly  advioo  us  at  onoo 
as  to  what  furthor  stops,  if  any,  you  propose  taking  to  protoot  us 
in  what  wo  oupposod  wore  oxclusivo  rights.  Wo  have  found  that  thoy 
actually  put  your  records  on  sale  through  thoir  Dealers  and  Jobbers, 
on  Hay  28th,  whioh,  of  course,  -yeloasbs  us  from  any  obligation  to  pay 
you  royaltios  originally  agrood  upon. 

fours  very  truly. 


General  Manager. 

47  NY  N  81  050PM 

Winnipeg  Man  June  3-1910 
National  Phonograph  Company, 

Orange  NJ. 

Manager  has  not  written  today  I  gave  permission  public  sale -I  never 
have.  You  are  within  your  rights  advertising  exclusive  sale  all  I  did 
was  to  allow  Victor  to  supply  anyone  who  wrote  direct  for  records. 
This  was  so  that  my  friend  oould  get  it  if  l  had  made  aontraot  . 
with  graraaphone  aompany,  it  would  not  have  been  verbal  X  am  not 

philanthropic  enough  to  give  a  business  house  such  an  asset  free 
Address  me  care  Allan  Company  steamers  Montreal. 


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June  2 Z,  1910, 

Mr.  Edison: 

1  have  read  your  memorandum  of  -the  22a  Inst.,  which  web 
addressed  to  Messrs,  Roller,  Dolbeer,  MoOhesney  and  myself,  ana 
also  Mr.  MoChesney's  reply  to  it. 

You  are  getting  around  to  the  right  Idea  when  you  Bay, 
"The  proposition  that  we  make  the  dealer  is  that  we  give  him  three 
or  four  months  credit'.'  This,  I  believe,  is  the  kernel  of  the 
whole  situation,  hut  you  must  realize  Mr.  Edison,  that  "Y/E"  are 
not  selling  the  dealers,  hut  on  the  contrary  we  have  always  let 
the  Jobbers  and  Dealers  market  our  goods,  though  under  rather 
presoribea  rules, 

Dow  we  might  extend  oredit  (on  maohineB  only),  to  a 
oertaln  class  of  dealers  and  Jobbers,  who  would  need  it  to  follow 
out  a  liberal  selling  plan  whioh  we  might  get  up  here,  and  only 
in  consideration  of  it  being  carried  out  to  the  letter.  If  this 
is  done,  you  will  find  that  it  will  not  be  neoessary  for  us  to 
"butt  in"  any  further  than  to  demand  that  in  consideration  of  the 
extra  terms  they  are  to  follow  a  plan  whioh  we  oan  map  out  here, 
made  up  on  the  experience  of  the  successful  Jobbers  and  Dealers, 
that  cannot  fail.  In  short,  "Mr,  Jobber  and  Dealer,  if  you 

will  follow  this  plan  (one  that  we  oan  outline  in  all  its  details, 
that  will  be  sure  to  win),  we  will  fix  it  so  you  oan  have  the 
machines,  and  do  your  part  in  carrying  out  a  sohema  that  is  bound 
to  make  good. 

It  is  my  idea  that  if  we  were  oareful  la  our  selection 
of  the  dealers,  and  would  instruct,  baok,  and  insist  upon  their 
following  a  known  successful  plan  of  selling,  we  could  develop  a 
selling  machine  that  would  be  going  at  it  right  all  the  time, 
and  would,  in  its  way,  be  as  successful  aB  Eabson  Brothers', 

C,  E,  Goodwin. 

July  19,  1910. 

Since  you  have  hinted  at  some  of  the  schemes  that  might 
he  brought  up  at  the  meeting  on  V/edne3day  night,  and  desire  to 
make  use  of  all  the  data  and  information  available  at  that  time, 

I  have  thought  it  would  he  well  for  mo  to  write  out  my  views  on 
the  conditions  that  confront  us  in  the  conduct  of  our  Phonograph 

Starting  with  the  self-evident  truth  that  a  line  either 
■goes,  or  it  don't,  and  asking' ourselves  what  about  our  line,  we 
must  admit  that  it  don't.  Either  relatively  as  compared  with 
the  sales  of  our  competitor,  or  actually,  considering  the  cost  to 
get  what  business  we  have.  I  have  been  considering  these 
matters  very  olosely  of  late,  and  I  am  getting  over  my  damning 
of  the  jobbers  anrl  dealers  for  theit  apparent  helplessness  and 
lack  of  interest.  Che  first  thing  under  the  present  circum¬ 
stances  that  anyone  in  our  position  is  prone  to  do,  is  to  rear 
up  and  curse  the  dealers  for  their  lack  of  faith  and  loyalty  to 
what  may  have  made  many  of  them  well  to  do,  and  while  I  admit  and' 
know  that  many  of  our  dealers  never  were  qualified  or  competent 
to  reach  the  market  successfully,  yet  I  see  every  day  in  the  sales 
men's  reports  a  condition  of  affairs  among  successful  and  intellig 
handlers  of  merchandise,  that  requires  further  study,  and  they  are 
not  to  be  dismissed  by  attributing  the  general  trend  of  things'.to 
apathy,  or  a  cowardly  ^difference.  There  are  a  goodly  number 
of  loyal  and  admiring  friends  who  are  at  a  standstill  with  the 
cylinder  product,  that  don't  need  to  be  told  how  to  market  goods. 

-  2  - 

I  take  it  from  conversation  with  you,  in  which  I  have 
in  a  measure  concurred,  that  you  feel  the  rank  and  file  of  our 
dealers  and  jobbers  have  come  to  the  end  of  their  string  in  the 
matter  of  expedients  and  schemes  for  the  promotion  of  the  business, 
and  that  it  is  now  up  to  us  to  resort  to  the  unusual  in  order  to 
go  on  with  the  distribution  of  our  product.  Just  now  we  are 
inventing  schemes  for  practical  business  men  to  carry  out,  rather 
than  new  things,  that  would  tell  a  new  story  of  themselves,  rou 
oan  set  it  down  for  si  fact  that  when  an  article  has  been  successfully 
handled  by  the1  best  prioe  maintenance  scheme  that  the  business  world 
has  ever  known,  and  then  runs  into  a  let  up  that  ours  is  having,  ■ 
most  of  the  legitimate  promotional  schemes  have  had  their, try-out, 
and' when  you  feel  as.  though  you  would  like  to  take  it  out  of  the 
hands  of  the  hitherto  successful,  and  run  it  on  some  plan  probably 
a  great  deal  more  costly  than  your  present  handlers  could  afford, 
you  are  nearing  the  end  of  your  string. 

Mie  fault  is  not  with  the  profits  in  our  line,  speaking 
in  a  broad  sense,  for  on  paper. they  are  much  greater  than  those 
made  on  the  Kodak,  the  Gillette  Razor,  and  several  other  going 
specialties.  In  short,  the  profit  prize,  together  with  compe¬ 
tition',  is,  and  always  has  been  large  enough  to  develop  the  highest 
efficiency  as  far  as  sales  plans  are  concerned,  and  anything  that 
takes  you  outside  or  bnyond  the  present  alluring  profits  held  out 
to  legitimate,  dealers^.,  for  an  alternative, will  never'  save  the  day. 

The  legitimate  dealer’s  present  troubles  would  soon  be  yours. 

There  must  bo  something  wrong  with  our  present  product. 

To  the  big  buying,  everyday,  newspaper  reading  and  money  spending 
nmerican  public,  our  present  product  no  longer  makes  its  appeal. 

There  is  no  denying  -this  fact*  With  thousands  of  dealers  exploiting 
the  machines,  and  over  a  million  purchasers  who  have  showed  them 
off  to  their  neighbors  and  friends  on  every  possible  occasion,  it 
is  all  rot  to  assume  that  we  haven't  had  a  good  start, 'anyway. 

The  mere  fact  that  it  is  feasible  and  profitable  to  take  a  wagon 
load  of  our  present  Phonographs  out  into  the  rural  districts,  and 
have  that  practioe  mark  the  greatest  success  that  any  of  our  dealers 
are  having,  simply  proves  that  our  beat  market  is  where  people  see 
and  hear  the  least,  all  of  which  to  a  healthy  and  going  business, 
would  bo  in  no  way  encouraging. 

let  us  see  if  the  present  system  of  Jobbers  and  Dealers 
is  wholly  unsuccessful,  even  when  carried  out  With  less  of  the  good 
will  between  manufacturer  and  the  trade  that  has  characterized  our 
history.  X  find  that  the  Victor  Company  has  followed  our  foot¬ 
steps  in  the  matter  of  price  maintenance  agreement:  s  and  general 
selling  plan,  as  far  as  jobbers  and  dealers  are  concerned,  und  as 
much  as  wo  would  have  it  otherwise ,' they  have  no  reason  for  complaint. 
Wow,  if  they  can  rush  their  factory  to  full  capacity  on  the  same 
.selling  plan  that  we  have,  it  is  no  argument  against  that  selling 
plan  to  say  "Oh  well,  they  are  selling  their  goods  in  the  cities", 
for  when  you  can  make  your  line  go  in  the  city,  with  a  public  that 
is  supposed  to  be  satiated  with  every  variety  of  amusement  as  a 
competitor,  you  certainly  have  got  the  goods,  and  in  time  they  will 
go  much  easier  and  faster  in  the. country.  Have  we  got  the  goods? 
Er.  Edison  very  rightly  says  that  the  thing  which  sells  our  com- 
petitorb  machine  is  the  fact  that  each  one  placed  makes  the  owner's 
neighbors  envious,  and  they  go  out  end  get  one.  I  have  always 
been  confident  of  this,  and  while  I  believe  that  a  general  pub- 

-  4  - 

licity  plan  is  always  necessary  in  connection  with  marketing  an 
article,  real  success  begins  when  the  scattering  sales  directly 
tracable  to  advertising,  begin  to  sell  other  machines  themselves, 

Kr.  Edison  is  on  record  on  this  theory,  and  it  was  also  borne  out 
in  my  observations  during  my  retail  experience.  Each  machine 
sold  brought  in  more  customers,  and^ when  you  get  a  machine  that 
brings  you  customers,  all  you  need  is  fairly  respectable  and  intell¬ 
igent  dealers,  who,  if  selected  with  ordinary  care,  should  properly 
display  and  distribute  on  a  scale  that  is  quite  satisfactory.  If 
the  theory  that  each  machine  sold  creates  a  desire  to  buy,  is  in 
any  degree  a  help  in  the  solution  of  this  problem,  what  are  the 
1,200,000  machines  that  we  have  outstanding,  doing  for  us?  Are 
they  propogatiug  their  species  by  exciting  an  uncontrollable  desire 
in  the  hearts  and  pocketbooks  of  those  who  come  to  their  owners’ 
homes  and  must  hear  their  best  efforts  before  allowed  to  say  good¬ 
night?  I  am  afraid  not.  I  am  afraid  that  the  present  demand 
doesn't  even  show  a  moderate  disposition  to  "increase  and  multiply" 
hy  this  method.  I  fully  believe  that  these  outstanding  machines 
should  be  doing  more  for  the  cause. 

II ow  before  we  fly  off  the  handle,  and  create  a  suspicion 
in  the  minds  of  the  trade  that  we  are  working  to  ends  that  make  it 
impossible  for  us  to  treat  all  alike,  let  us  see. what_ something 
radically  new  is  going  to  work  out  for  us.  My  observation  of 
Mr.  Edison  yesterday,  in  a  conversation  down  in  the  yard,  is  the 
key-note  to  the  whole  situation.  leaning  against  one  of  the 
wagons,  his  face  lighted  up  when  telling  me  of  his  visit  to  the 
plant  at  Glen  Hidge.  His  enthusiasm  over  what  the  new  material 

is  making  possible  over  t  lie  re '  simply  'Shows  me  what  effect  it  will 
have  on  thousands  of  our  dealers.  They  are  going  to  take  new 
life  and  interest,  and  they  are  hound  to  sell  a  lot  of  these  new 
machines.  Those  who  hear  them  are  going to  buy  because  of  the 
new  interest  they  create.  As  "Scotty"  would  say:  "That’s  the 

whole  story". 

This  does  not  call  for  any  less  enthusiasm  in  trying  out 
the  proposed  wagon  scheme,  for  it  is  clearly  shown  that  a  certain 
field  canvassed  in  this  way,  will  be  productive  of  good  results. 
The  proposed  trial  of  a  doaen  wagons  will  clearly7  demonstrate  the 
advisability  of  the  plun,  and  in  what  proportion  we  should  enlarge 
it.  In  order  that  it  may  he  proven  to  the  utmost,  I  think  it 

advisable  to  let  our  salesmen  go  with  the  wagons  for  a  time”,  to 
report  to  us  for  advice,  so  that  we  can  be  posted  as  to  the  actual 
workings  of  the  scheme. 


July  21st,  1910. 


Re.  additional  out-out  llBt. 

lal.  the traa® °n August iEth, 

1910,  that  850,  two  minute  reoords  will  he  omitted  from  our 
catalogue  as  of  August  16th,  1911,  ana  that  In  the  interim 
the  trade  are  to  use  their  utmost  endeavors  to  dispose  of 
their  stook  on  hand  of  these  partloular  numbers. 

We  will  also  notify  them  that  we  will  permit  them  to 
give  away  any  nine  (9)  of  these  records  to  any  bona  fide 
owner  of  an  Edison  Phonograph  who  effeots  the  sale  of  another 
Edison  Phonograph,  this  in  lieu  of  the  six  special  Amberol 
reooras  which  are  now  being  given  away  under  our  oertifioate 

,  ^  3!£l8  J?  ?e  handled  by  an  addenda  to  the  oertifioate  now 

in  effect,  whioh  will  oover  the  matter  very  fully, 

Shis  announcement  to  convey  the  Information  that  on  or 
about  August  15th,  1911,  we  will  offioially  notify  the  trade 
as  to  the  disposition  of  the  balance  of  the  860  list  then  in 
their  hands,  whioh  will  enable  them  to  dispose  of  them  without 
jloss  to  tneznseiYea* 

Shis  plan  contemplates  the  disposition  of  future  cut¬ 
out  records.  Our  action  as  regards  additional  out-out  listB 
to  be  governed  by  th^  way  this  first  list  is  handled. 

Shis  Bhould  be  oarefully  considered,  and  our  decision 
announced  to  the  trade  at  the  earliest  possible  moment. 

.  .  +  ^ 
m?5  "  Mr*„Edls?n5  Mr*  Wilson;  Mr.  Wm.  Pelzer;  Mr.  Weber; 

Mr.  MoOhesney;  Mr.  Stevens;  Mr.  Berggren.  ’ 

Mr.  Aylsv/orth:- 

Mentioning  the  Baekeland  patents  to  Mr. 
Edition  laDt  night,  1  told  him  that  one  of  the  patentB  appear¬ 
ed  to  cover  a  oomposition  in  whioh  there  was  a  large  per¬ 
centage  of  wood  pulp  in  the  o<e*itre  and  a  smaller  percentage 
on  the  outside.  Mr.  Edison  suggested  that  the  same  percent¬ 
age  of  wood  pulp  might  he  used  in  the  oentre  as  well  as  in 
the  outside,  hut  that  some  additional  material  might  he 
used  in  the  oentre.  You  might  discuss  this  matter  with  Mr. 
Smith  and  see  if  it  has  any  importance  in  connection  v/ith 
this  particular  patent. 

E .  L.  1). 

ELI)/  ARK..' 

Messrs.  V/ilson,  Uolbeer  &  Goodwin: 

In  order  to  make  a  reoord  of  the  queBtionB  dis¬ 
cussed  laBt  night  with  Hr.  Edison  and  tentatively  agreed 
upon,  subject  to  confirmation  or  modification,  please  note 

(1)  Hr.  Edison  will  take  up  with  the  Engineering 
department  the  possibility  of  no  making  the  drawers  of  the 
Amberola  cabinet  that  they  can  be  used  either  for  disk  or 
cylindrical  reoordn.  If  this  can  be  done  Pooley  will  be 
given  dimensions,  and  will  furnish  one  sample  as  coon  as 
possible  for  approval.  After  approval  of  sample,  Pooley 
will  be  given  shipping  orders  for  1000  mohogony  and  300 
oak  cabinets  now  contracted  for,  deliveries  to  begin  as 
near  October  1st  as  possible,  and  oor.tinued  at  the  rate 

of  500  per  month. 

(2)  V/e  are  to  make  six  sample  disk  cabinets, 
three  of  thorn  to  be  sent  to  three  different  manufacturers 
with  requests  for  priceB  in  lots  of  100,  and  if  the  prices 
are  satisfactory,  place  orders  for  100  cabinets  with  each 
manufacturer,  we  to  retain  the  other  three  cabinets  to 
make  comparisons  with  when  received.  If  a  single  cabinet 
for  comparison  will  be  enough,  then,  of  course,  only  four 
cabinets  need  be  made. 


7“  'T  . : . "  '  '  ' 


(3)  The  Engineering  Department  will  bo  immediately 
inetructed  to  design  a  suitable  cabinet  for  a  (SCO  disk  na- 
ohine  with  horn,  ut  onoe,  with  the  view  of  making  them  in 
our  own  plant.  As  it  will  tales  tv/o  months  to  got  lumber, 
it  should  be  ordered  at  tho  earliest  possible  moment. 

10,000  cabinets  will  bo  needed. 

(4)  Circularise  tho  entire  trade  on  the  new  disk 

machines  when  wo  are  ready  to  put  them  out,  advising  them 
if  jobbers  do  not  carry  machines  to  send  orders  direct  to 
us  and  that  v/e  v/ill  fill  them.  . 

(5)  When  disk  motor  is  finally  approved,  issue 
manufacturing  orders  for  IK, 000  motors,  placing  orders  for  ' 
raw  material,  so  that  beginning  November  1st  they  will  come 
through  the  factory  at  tho  rate  of  Goo  per. week. 

(C)  On  the  Bubjeot  of  the  return  proposition  and 
permitting  cut-out  two-minute  records  to  be  given  away  as 
premiums  instead  of  special, Araberol  records,  Or.  Dolbeer 
is  to  prepare  the  neoessary  announcements  to  be  approved 
before  sending  them  out. 

On  the  subject  of  canvassing  by  special  v/agonB 
to  b e rented  out  through. jobbers  to  a  selected  list  of 
dealers,  the  following  figures  were  prepared  to  show  what 
was  regarded  as  the  minimum  business  to  be  done  by  each  ■ 
wagon j 


KiVjir/nccm'  liY  us  (14  wagons) 

25  machines)  t,  :>15.c;0  ~  $378.00 

25  doss,  records  £.:  (; 2.00  s  52.  50 

1  wagon  1  month.  0427.  50'“ 

14  wagons 

4275  0 
55)05  00 
3  won'thB 

1''.  L.  jjyer 

(Copy  to  Ur.  Edison) 


c/jiVAM'i.vai  skuas  - 

25  Bittchinon  per  month  average  ;;30  each  =  0750 

15#  oomiooion  ss§112  .50 

25  doz.  recordu  Arabcrol  and  •£■  2-min.) 

average  #5  per  dozen  ss  125.00 

10pS  oormaioaion  ~  15.75 

0112.50  +  010.75  s  130.75 

Cost  for  hoard  -  30  days  Hi  01.76  =  52.50 

0130.75  -  052.50  =  070.25  1TO1I  KOH  :;0HTH 

UK  All'll  MAKES 



15/'  to  Agent  0130.75 
Kent  of  wagon  2.50 
11  "  horse  15.00 


JOhDun  makes 

03,00  each  on  25  nachinos 

.90  per  doz.  on  25  doz.  records 

.  0300.00 
:  30.00 

.  22.50 


,  075.00 
:  22.50 

012.  each  on  25  Machines 
2.40  per  doz.  on  12-2.-  doz. 
1.80  per  doz.  11  "  " 

)jU*v . - 

July  21st ,1910  OfBt  JUh 

\Wflj mni  j 

Please  let  me  have,  by  Tuesday  of  next  week,  a  memorandum 
from  you  suggesting  any  changes,  improvements,  corrections  or 
additions  that,  in  your  opinion,  should  be  made  in  the  next 
issue  of  our  Phonograph  Catalog,  a  copy  of  which  is  enclosed 

We  must  have  a  new  catalog  ready  for  use  of  the  trade  not 
later  than  the  middle  of  September,  and  to  do  even  this  the 
work  must  be  put  in  hand  at  once. 


Mr.  McChesney:- 

Heplying  to  your  memorandum  of  the 
21st  inst.,  1  suggest  the  following:- 

(1) . -The  statement  on  page  2  in  Mr.  Edison's 
writing  must  have  been  written  very  hurriedly  by  him. 

1  think  he  ought  to  write  this  over  again. 

(2)  The  descriptive  matter  commencing  on  page  3 
should  he  elaborated,  bringing  out  more  strongly  the 
talking  points  of  our  maohine  and  reoords,  particularly 
that  the  up-and-down  or  phonograph  cut,  with  the  sap¬ 
phire  stylus  always  closely  engaging  it,  gives  better 
and  more  natural  reproduction  than  any  other  style  of 
recorder.  Also, ^  that  with  cylinder  reoords,  the  surf&ce 
speed  is  always  constant,  giving  more  uniform  results. 
Why  not  state  that  when  the  German  Government  wished  to 
make  records  for  the  German  Museum,  in  order  to  preserve 
modern  languages  of  dialeots,  it  selected  the  Edison 
Phonograph  as  the  best  maohine  for  the  purpose.  Also, 
that  the  JSdiBon , cut  record  is  the  only  one  that  has  ever 
been  used  for  stenographic  or  dictation  purposes,  indi¬ 
cating  that  Buoh  a  reoord  gives  the  best  results.  Also, 
bring  out  strongly  the  fact  that  with  the  Edison  oylinder 
maohine,  records  carl  be  made  at  home,  adding  greatly  to 
the  utility  aind  attrao^tivenesB  of  the  phonograph.  I 
think  this  introduction  should  also  make  a  strong  play 

#2-  Mr.  MoChesney. 

of  tho  fact  that  Mr.  Kdiaon  is  the  power  behind  the 
Company  and  gives  the  design  and  improvement  of  the 
phonograph  almost  constant  attention. 

(3)  I  presume  you  intend  to  include  in  the 
catalog  the  new  v/ooden  horn  outfit. 

(4)  Heference  to  the  Model  "O"  opeulcer  should  he 
made  on  page  25. 

I1.  L.  D. 




O/o  Edison  Mfg.  Oo. 

Several  times  X  have  endeavored  to  communicate  with 
you  by  telephone  but  have  in  each  case  been  told  that  you  were  occu- 
pied.  or  awey.  I  have  therefore  requested  that  you  would  call  me  up 
on  the  telephone,  which  your  people  answering  the  phone  promised  to 
dq.  Apparently  my  messages  have  never  reached  you,  and  I  would  like 
very  much  to  have  you  investigate  this  matter  and  find  out  whether  or 
•'  not\  it  is  possible  to  communicate  with  you  by  telephone. 

to  fh*  ti  Trm  +Th|  about  which  I  to  see  you  are  in  reference 

to  the  payment  of  my  bills  as  per  terms  of  our  contract  for  the  gener- 
S0.ld  y°ur  °ompany,  also  the  matter  of  the  small  light  for  toy 
outfit,  besides  other  matters  in  reference  to  batteries  and  the 
Oxygen  and  Welding  business. 

.  1  have  been  so  exceedingly  busy  with  the  incorporation 

of  my  Companies,  etc.  that  it  has  been  impossible  for  me  to  come  to 
orange  as  I  had  hoped.  X  wish  to  come  out  sometime  and  see  your 
welding  plant,  but  I  trust  it  will  not  be  necessary  for  me  to  come 
in  reference  to  my  bills  which  are  long  past  due.  As  this  is  a 
personal  matter  and  not  a  Company  matter  I  need  the  funds  as  this 

18  5frri!d^?n  *y  rae  Pers°nally  and  not  by  a  Company;  there¬ 
fore,  the  entire  deficit  of  over  000.00  comes  out  of  my  pocket. 

??-ease  have  the  courtesy  to  straighten  this  matter  out,  as 
you  know  the  circumstances.  * 

.  .  ..  *  have  this  day  written  a  letter  to  the  Edison  Oo. 

oSlafmv  off-i  dot£X  fully>  1  ^  also  hoping  that  you  will 
call  at  my  office  at  some  convenient  time  to  see  the  various 

f  2  I  haV?>  and  g0  over  the  welding  business  which 

±  am  sure  will  interest  you. 

Diet,  G-. 





NEW  YORK,  N.  Y._Jl«ie_3-?-4, 1-910, 



NEW  YORK,  N.  Y _ sImS-JLZtb.,.131£L_ 



i  Invoice  rendered  #558 
#58  7 

#577  (§2168.00) 

100  outfits. . ©  $17.18 

’  Royalties  due  on  24  generators , as  per 

your  cr.  memo.,  May  19. @.$4.50. each . . 

i  n  *  17  >i  ..  is 

your  cr.  memo.  June  15  @  §4-. 50  each . . 

1  Invoice  rendered  #596 

12134,  h 


Mr.  Edison: 

I  attach  a  table  showing,  in  a  general  way,  the  ex¬ 
penditures  of  my  department  in  the  fiscal  year  ending 
Eeh. 28th, 1910,  as  requested  by  you  on  Monday.  This  table 
simply  gives  the  bills  checked  through  by  my  department, 
and,  as  stated  in  the  heading,  does  not  include  petty 
cash  amounts  asked  for  certain  kihds  of  postage,  or  the 
salaries  of  the  department,  over-head  expenses,  etc. 

The  items  are  somewhat  misleading,  because  they  are  for 
the  fiscal  year  and  not  the  calendar  year.  For  instance,  news¬ 
paper  advertising  is  given  as  $87,411.54.  This  was  the  amount 
spent  from  Oct. 1909  to  Mar.1,1910,  and  about  $60,000.00  more 
was  spent  in  the  . same  campaign  during  the  months  of  March, 

April  and  May  of  this  year. 

Ho  farm  paper  advertising  whatever  was  done  between 
October  and  March, 1910.  The  amount  given  in  the  table  was 
for  advertising  done  between  March  1st, 1909,  and  July  1st,  • 
1909.  The  other  items  do  not  vary  materially.  Whether  given 
for  the  fiscal  or  calendar  year.  Several  of  the  items  are  for 
factory  forms,  and  really  have  no  part  in  a  table  of  advertis¬ 
ing  expenditures.  A  large  part  of  the  general  printing  for 
trade  use  is  governed  by  conditions  that  cannot  be  changed 
unless  some  radical  change  is  made  in  our  policy.  In  other 
words,  the  Phonograph  Monthly,  Phonogram,  Record  Supplements, 
Record  Bulletins,  Record  Hangers,  Record  Order  Blanks,  etc., 
etc. ,  will  not  vary  materially  in  cost  unless  we  decide  to 
eliminate  some  of  the  forms  or  to  get  than  out  in  a  cheaper 

The  fact  that  we  may  reduce  on  our  records  the  names  of 
12,500  dealers  to  say  5,000  active  dealers  does  not  really 
affect  the  demand  for  printed  matter  for  the  5,000  active 
dealers  are  the  ones  who  are  using  it  now,  the  Inactive  ones 
using  very  small  quantities  or  none  at  all.  Our  printed  matter 
is  almost  entirely  distributed  to  dealers  through  Jobbers  and 
we  have  never  yet  been  able  to  convince  Jobbers  that  they 
ought  to  have  less  of  it.  In  fact,  it  is  difficult  to  print 
enough  to  fill  their  orders.  Y7e  are  frequently  compelled 
to  arbitrarily  cut  down  quantities  asked  for  beoause  of  the 
practical  impossibility  of  furnishing  what  is  asked. 


'  An®.  6,  1910. 

Hr.  J.  V/.  Aylsworth,; 

223  Midland  Avc. , 

East  Orange,  II.  J. 

Pear  Walter: 

I  have  aeon  Hr.  Edison  to-day  about  fin¬ 
ancial  matters  and  with  hi 3'  approval  liavc  arranged  , 
to  hare  the  national  Company  pay  you  an  additional 
salary  of  §35.00  per  week.  Shis  -/ill  begin  as  of  ' 
August  1st. 

'Hr.  Edison  was  particularly  incistont  that 
all  the  espouses  of  your  laboratory  should  ho  assumed 
by  us ,  so  that  you  want  to  be  sure  that  this  is  not  a 
burden  upon  you. 

Vory  sincoroly. 

Pli/l  Y/V/ 


August  16,  1910. 

accompanied  By  Aug.  Sturm  and  E.  B. 


TIME  SPENT  --  9.30  A.M.  to  5  P.M. 



At  Mr.  Christiana  Laiccia  100  Cone  Street  Orange  and  sold  Home 
Cygnet  Phonograph  and  2  APherol  and  fl  Standard  records. 

This  is  a  party  they  had  made  some  talk  with  some  time  ago. 
CALLNO.  2. 

At  Mrs.  Leffert  no.  599  North  7th  Street,  Newark,  and  got  Home 
Cygnet  phonograph  and  u  A»berol  records  that  we  left  there  last  week 
on  trial.  Said  she  enjoyed  it  very  much  and  wanted  to  keep  it  ,  hut 
her  husband  would  not  let  her. 

CALL  NO.  3 

At  wrs.  Towers  No.  512  North  7th  Street,  Newark.  Was  not  at 
home,  hut  her  little  hoy  said  they  were  going  to  keep  it,  and  that 
his  mother  staid  in  yesterday  as  she  thought  we  would  he  there .  She 
has  Standard  Cygnet  and  5  AWberol  records. 

CALL  NO.  4. 

At  Mrs.  Decker  No.  574  North  7th  Street,  Newark  and  got  Home 
Cygnet  phonograph  and  records  that  we  left  on  trial. 

We  called  there  last  wee:  and  she  said  she  would  get  a  larger 
machine  later,  hut  to, leave  the  Home  .here  a  little  while  longer*  V/e 
are  to  deliver  Triumph  Cygnet  phonograph  there  November  1,  1910. 

CALL  NO.  p. 

At  mts.  Peterson  565  North  7th  Street  Newark  where 

left  Home 

Cygnet  Phonograph  and  records  on  trial,  and  she  said  she  would  like 
to  have  us  leave  it  there  a  little  longer,  as  her  husband  had  not 
decided  what  to  do  about  it  yet,  V/e  are  to  call  there  in  a  few  days 
and  they  will  decide  then.  She  wants  it. 

CALL  WO.  5. 

At  Mrs.  Baler  wo.  lol  Horn is a  Street  Newark,  where  we  left 
Standard  Cygnet  and  then  changed  it  for  Home  Cygnet  phonograph.  Her 
son  said  she  was  going  to  keep  it,  and  for  us  to  call  later  and 
get  deposit  on  it. 

CALL  WO.  7. 

On  lady  at  wo.  40  Ridgewood  Ave . ,  Newark.  Would  not  have  one 
in  the  house. 

CALL  WO.  3. 

On  lady  at  38  Ridgewood  Ave.V  Newark.  Roes  not  like  then, 
would  not  think  of  having  us  leave  one  on  trial. 

CALL  WO.  9. 

On  lady  at  33  Ridgewood  Ave.V  Newark,  Got  other  ways  to  spend 
her  money  with  atvi  buying  Phonographs. 

CALL  NO.  10. 

On  lady  No.  33  Ridgewood  A  a.  Newark.  Would  not  listen  to  the 

CALL  NO.  11,  12,  13,  and  14. 

On  people  at  No.  31,  29,  30  and  27  Ridgewood  Ave.  Ron't  like  i..  u 
them  and  would  not  have  one  in  the  house. 

CALL  NO.  15. 

On  lady  No.  26  Ridgewood  Ave.  Newark,  Has  Victor,  and  would  not 
consider  buying  any  pore. 

CALL  NO.  16. 

On  lady  No.  17  Ridgewood  Ave.  Newark  Would  not  listen  to  any 
such  proposition. 

CALL  NO.  17. 

On  lady  No.  122  Avon  Ave.  Newark,  Could  not  buy  one  now,  and 
would  not  let  us  leave  one  on  trial. 

CALL  NO.  18. 

On  lady  at  n°.  126  Avon  Ave.  Newark.  Ron't  like  them  and  shut 

the  dc 

CALL  HO .  19. 

On  Mr.  Bernhardt  Ho.  160  Avon  Ave.  tfo v.-arjc  and.  left  Standard 
Cygnet  Phonograph  and  records  on  trial. 

Had  old  style  Standard  some  years  ago  and  sold  it,  but  said 
he  might  buy  another  one. 

CALL  HO.  20. 

On  lady  P,o .  162  Avon  Ave.  Hev/ar.-:.  Has  Edison  Standard  phono¬ 

CALL  HO.  21 ,  22,  23  and  2d. 

On  ladies  on  Avon  Ave.  Hewer.  and  they  would  not  let  us  leave 
any  on  trial  as  they  had  heard  all  the  Phonographs  they  wanted. 
CALL  HO.  25. 

On  man  at  Ho.  518  Bergen  Street,  ttev/ari:  Has  Victor  and  would 
not  buy  any  other. 

IrC^cJU  ■ — 

3  ^  {Aa 

a-  ef'-'d 


WAgOH  HO.  2  (JAMES  K.  O'DEA)  accompanied  by 

TIME  SPENT  —  10  A.  II.  to  4  P.  M. 





CALL  HO.  1  to  8. 

Made  8  calls  picked  up  machines  and  records  and  gave  each  a  strong 
talk  and  walls  we  only  landed  one  45.00  sale,  have  prospects  for  future 

CALL  HO.  9. 

Mark  Paterson,  Goffell  Load,  North  Paterson  placed  a  Fireside  Cygnet 
and  24  Amberol  records,  (good  prospect) 

CALL  HO  10 

Mrs.  Mo  Hair  745  Lafayette  Ave.  North  Paterson.  Placed  one  Standard 
Cygnet  Machine  and  24  Amberol  records  Ofair  prospect) 

CALL  HO.  11. 

Mrs.  H.  7/ells,  was  going  away  over  Sunday  o.nd  asked  us  to  call 
Tuesday  and  leave  a  machine  on  trial. 

CALL  HO.  12,  13  and  14. 

Made  three  other  calls  in  this  section  where  they  had  an  Edison 
machine . 

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|  / 


September  IS 

lir.  Edison: 

Here  are  copies  of  the  V/agon  lease  and  Special  Credit 
Agreement,  a  supply  of  which  were  taken  out  hy  each  of  the  sales¬ 

They  are  to  he  Blgned  in  triplicate,  each  Dealer  keep¬ 
ing  one,  and  sending  two  copies  to  the  Jobber.  If  the  Jobber 
accepts  the  order,  he  forwards  one  of  the  two  copies  sent  him, 
to  us,  which  is  our  official  justification  for  shipping  a  wagon 
to  the  Dealer. 

Some  of  the  Dealers  may  start  without  our  wagon,  using 
some  vehiole  of  their  own,  but  the  salesmen  seem  to  think  that 
they  will  want  our  wagon  just  as  soon  as  they  can  get  it,  and 
only  use  their  own,  pending  its  arrival. 

C.  'E.  Goodwin. 


r'orm  Hp.x . 

CJ,  -fa  \JM'^  ' 

£o~~ . 




This  agreement  witnesseth  ’that 

palled  the  lessor),  has,' 

i  leased  to 


ii- - - — ; - -  (hereinafter  called  the  lessee)  for  th° 

term  of  six  months  from  the  date  hereof  one  special  three 
fe™C°T?rnd  mg0V'?ished  cy  the  National  Phonograph 
Company,  of  Orange,  N.  J.  ,  and  arranged  especially  for  t'^e 
delivery  of  Edison  Phonographs,  and  the  said  lessee  agrees 
to  pay  to  trie  lessor  each  month  during  the  continuance  of  thi 
agreement  a  monuhly  rental  of  four  dollars,  ($4.00)  and  to 

WI'S+f  ^  g0?d  re'Raj'r’  reasonable  wear  and  tear 
pxcepued ,  and  at  the  termination  of  this  lease  to  return 
the  said  wagon  to  the  lessor  or  his  assigns.  The  lessee 
liurtoer  agrees  that  he  will,  during  the  term  of  this  lease 
keep  the  said  wagon  actively  in  use  in  seuUig  TfaiJon  ' 
Phonographs,  and  that  he  will  so  use  it  on  at  Jw»t  each 
clear  day  during  the  term  of  this  lease,  Sundays 'end  holi¬ 
days  excepted;  that  he  will  not  carry  or  permit  to  be 
carried  any  advertising  matter  on  the  said  wagon  other 
than  that  which  pertains  to  Edison  Phonographs  and  Records 
sxclusiyely;  that  he  will  use  it  for  no  purpose  Whatsoever’ 
O'-ner  than  the  sale  of  and  delivery  of  Edison  Phonographs 
ana  Records,  and  that  if  the  manner  and  extent  of  the  use 
of  said  wagon  is  not  satisfactory  to  the  lessor,  the  latter 
may  terminate  this  lease  at  the  end  of  any  calendar  monto 
on  one  week's  notice  prior  to  such  termination,  provided 
that  any  dispute  as  to  the  exercise  of  this  right  shall  be 
submitted  to  tne  National  Pnonogrsph  Company,  of  Orange 
!|N.  J. ,  whose  decision  thereon  shall  be  final: 

In  consideration  of  the  execution  by  the  lessor  of 

I  this  agreement,  and  of  the  execution  of  a  special  Credit 
Agreement,  Perm  So. AH.  between  the  lessor  and  lessee, 
the  lessee  also  agrees  that  for  a  period  of  at  least  three 
(3)  years  from  the  date  hereof,  he  will  not  use  any  vehicle 
for  exploiting  the  sale  of  any  sound  reproducing  devices 
other  than  Edison  Phonographs. 

Y/itnesses : 


The  agreement  below,  when  entered  into  by  an 
authorized  jobber  of  the  national  Phonograph  Company  and  an 
authorized  dealer  of  the  National  Phonograph  Company,  is 
sanctioned  by  'the  National  Phonograph  Company,  and  the  said 
Couiipany  hereby  agrees  that  the  jobber  may  extend  to  the 
dealer  four  months'  time  for  malting  payment  for  the  Edison 
phonographs  covered  thereby,  provided,  however,  that  a  copy 
of  this  agreement  shall  be  forwarded  to  the  said  Company 
within  two  day3  of  its  execution,  and  the  said  Company 

reserves  the  right  (if  the  credit  allowance  of  said  Jobber 

is  exceeded,  or  for  other  reason  satisfactory  to  the 
Company)  to  refuse  to  ratify  and  sanction  said  agreement, 
in  which  case  the  jobber  and  dealer  shall  he.  immediately 
notified  of  its  action. 


This  agreement  entered  into  this _ day  of 

_ _  191  ,  between _ 

hereinafter  called  the  Jobber,  e.nd _ 

hereinafter  called  the  Dealer,  WITNESSETH : 

Por  and  in  consideration  of  the  special  terms 
hereinafter  granted  by  the  Jobber  to  the  Dealer,  the  Dealer 
agrees  as  follows: 

(1)  That  until  the  Dealer  has  paid  in  full  for 
all  Edison  Phonographs  purchasead  under  this  agreement  from 
the  Jobber,  he  will  purchase  no  Edison  phonographs  from  any 
other  Jobber. 

(2)  That  he  will  place  an  initial  order  with  the 

Jobber  for  not  less  than _ .Edison  phonographs 

of  assorted  types. 

(3)  That  he  will  make  diligent  effort  to  sell 
Edison  phonographs  on  a  free  trial  and  leasing  plan,  and 


in  soliciting  such  sales  will  make  use  of  a  wagon  to  be 
furnished  by  the  national  Phonograph  Company,  or  of  a 
wagon  or  other  vehicles  specially  arranged  by  the  Dealer, 
and  where  he  places  the  Edison  phonographs  supplied  to  him 
by  the  Jobber  under  this  agreement  or  any  Edison  phono¬ 
graphs,  on  such  arrangement,  to  use  a  leasie  agreement  pro- 

Ivided  by  the  National  Phonograph  Company,  and  known  as  Eorm 
643 j  to  have  the  same  executed  in  each  case  by  the  purchaser 
in  quadruplicate,  the  Dealer  to  keep  the  original  thereof 
signed  by  the  purchaser,  give  one  copy  thereof  to  such  pur¬ 
chaser,  and  send  the  third  and  fourth  copies  thereof  to  the 
Jobber.  The  Dealer  may  order  additional  Edison  phonographs 
from  the  Jobber  under  this  ag-eement  up  to  the  number  of  sucl 
leasing  contracts  as  he  may  have  secured  so  long  as  the 
Jobber  is  willing  to  furnish  Edison  phonographs  under  the 
special  credit  hereby  provided  for. 

The  Jobber  for  and  in  consideration  of  the  fore¬ 
going,  agrees  that  on  all  Edison  phonographs  furnished  by 
him  to  the  Dealer  under  this  agreement.,  including  the  initial 

order  of - Edison  phonographs,  and  any  additional 

Edison  phonographs  furnished  by  the  Jobber  to  the  Dealer 
upon  receipt  by  the  Jobber  of  leases  as  hereinbefore  pro¬ 
vided,  he  will  grant  the  Dealer  four  months'  time  of  payment, 
this  special  credit  being  extended  in  order  that  the  goods 
may  be  sold  to  users  under  the  leasing  proposition  above 
referred  to. 

Witnesses : 

uy  to  sept.  4gar,^‘  13^*  7^^***^ 

Husband  don't  like  .than  o  graphs 

im  rw  w/  ^ 
mmiw  ftHimmi/m 
i+t\\j^1  n+l  fW-  W  W  w 

lady  wanted  one,  husbana  i 

lady  or  husband  don't  like 

H4J  DU  ffil 

Just  bought  a  Piano 
tody  would  not  listen 

Saia  would  not  have  ono  under 
any  oonditions,  si  ok  of 

Said  might  get  ono  later 

lady  said  had  one  next  house, 

aiok  of  it,  not  have  ono  . 
as  gift  11 

Will  probably  buy  an  attachment  14 

feu..,,  _  ttu  m  mm  chi  nu  'tm'rwtm  m  aj  m/  m  //// 

ini  1111  ^  • 

mi  mm  nH  m  mi 



v/  Wanted  ub  to  Tiring  a  Homo  Cygnet 
on  trial 

/  Wanted  it  left  a  little  while 
long  er 

*  lady  said  had  other  uses  for  money 
4  lady  said  couldn't  buy  one  now 

•  Would  hay  soon 

✓  Uobody  answered  call  boll 



16  rtf!  m  rH-J  fcfft 

1  i 

2  W 
4  l|| 


/  lady  once  had  Edison  -  ISO  Records 

tired  of  it  (Hid  sold  it  l  tUI  II 

Could  not  afford 

6  mi  m  m 

s  Has  Columbia  Diso 

0  Couldn’t  get  Lady  to  consider  as 
she  had  Piano 

/  Children  taking  music  lessons, 
flhono  would  dotraot 

loft  more  reoords  at  previous 

4  Has  Edison  -  wants  more  records 

Kan  said  wife  lilcod  phono  -  was 
away  -  oa 11  again 

v  lady  busy  with  oompany,  wanted 
us  to  oall  again 

imi  m 





Took  up  machines  previously  loft  13 

Record  oall 


Said  very  nice  but  wouldn’t  buy 

Sold  records 

8111  dooide  later 

Took  back  Fireside  left  Gem 


4  III 

y  nantod  to  see  husband  about  leav¬ 
ing  one  4 

0  tody  said  not  interested  in 

Phonos  1 

0  ton  didn't  like  Phonos  1 

m  a 

mti  mm 


^  Hobody  home  young  man  didn't  aare 

have  one  till  saw  Ms  1 

0  Husband  and  wifo  couldn't  agree 

on  having  one  left  11 

Said  only  lived  there  in  Summer 
Will  trade  for  an  Amberola 



VJanto  to  talk  it  over  with 

i  ml  //// 

Had  a  Viator,  o old  it  hot;  has  Standard 


Han  ordered  ono  loffs  hut  w lfc  said 
had  no  room 


Sold  Attachments 

6  l|l 

Sold  Horn  and  Attachment 


i  J 

Formerly  owned  Edison,  sold  it, 

wanted  another,  was  moving,  oomo 
when  sot  tied 


Wouldn't  consider  having  machine  on 
Free  Trial 

2  ■  mm  wm 


7a  dy  didn't  holiovo  in  Ires  Trial 
o^  anything 

i  a 

Brought  more  records  to  man  who  had 
one  on  trial 


Baok  oa'J.1  -  gone  to  had 


Records  broken 



Husband  wouldn't  allow  her  to  keep  it 


Wants  us  to  call  next  week  when  will 
deoide  if  keep  it 


Said  husband  would  put  liar  out  of 
■house  if  she  took  on  trial 



Wanted  one  but  must  ask  father  first 



Ji&s  a  Home,  tired  hearing  it  -  wanted 
to  sell  it 


Wants  Fireside  a  banged  to  a  Home 

1.  1 

IJuoh  pleased  with  it,  can't  buy  now, 
oall  la  ter 

1  1 

Will  take  the  one  she  has  and  pay  in 

16  days 


Made  7  calls  no  results  -  E  told  men 
to  give  details  hereafter 



Has  one  on  trial,  oome  lator,  hasn't 
the  money  now 



Has  a  Columbia,  tray  buy  an  Edison 



Had  one,  derrposed  of  it  -  glad  to  got 
rid  of  it 



Don't  want  to  bother  with  it  just  now 

1  1 

Has  no  time  to  listen  to  phono  talk 




Iady  has  friend  in  11.  Y.  who 
offorod  to  give  her  one, 
wouldn't  aoospt  1  / 

lady  has  a  Viotor  will  nevor  have 

anothor  1 

lady  oouldn't  oonaidor  it  r,ow  -  had 

death  in  ihraily  1  ]  II 

Wouldn't  consider  freo  trial  -  don't 

like  phonos  2  II 

Hot  interested  3  /7~H 

Has  Piano,  wouldn't  consider  a 

phono  1  ||1 

Slammed  door  in  my  faoo  1  ||/ 

Has  Gem  hut  oouldn't  afford  attach¬ 
ment  just  now  1 

\J  WiKlC  I  h*4  MCCjl  cui  o. 

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l/  (fuXCc^  3"t-ir  e<i  tcC&  -  I  , 

Messrs.  J.  P.  Morgan  3>  Company, 

23  Wall  Street, 
Now  York, 

Gentlemen : - 


Referring  to  the  interview  with  your  Mr. 

Stevens  this  morning,  I  hog  to  advise  you  that-  the  item 
"Advances  to  affiliated  companies,  etc",  amounting  on  Febru¬ 
ary  28th,  1910,  to  $1,397,249.23,  in  the  comparative  balance  . 
shoots  of  the  national  Phonograph  Company,  is  explained  as 

$211,412.98  Amount  due  from  the  Edison  Phonograph  Works. 

Phis  represents  a  balance  for  cash  advanced, 
to  the  Edison  Phonograph  Works  for  the  construc¬ 
tion  of  its  factory  buildings.  The  amount  two 
or  throe  years  ago  was  over  $500,000.,  but  has 
hoen  gradxially  reduced  by  purchases  from  the 
Phonograph  Works.  . 

51,057 .84  This  represents  goods  purchased  from  the  Nation¬ 
al  Company  by  the  Edison  Business  Phonograph 
Company.  This  account,  of  course,  is  an  open 

carried  forward. 



ono  that  fluctuates  considerably.  It  is  grad¬ 
ually  being  decreased  by  tho  Edison  Business 
Phonograph  Company,  which  -is  now  on  a  paying 
haBis.  Tho  Edison  Businoss  Phonograph  Company 
was  organised  to  tales  care  of  tho  Commercial 
Phonograph  Department  of  the  national  Phonograph 

Khia  represents  purchases  hy,  tho  Iondon  Company 
from  tho  National  Phonograph  Company,  and  is 
also  an  open  account.  She  stock  in  tho  English 
Company  is  or/nod  hy  tho  national  -Phonograph  Com¬ 
pany.  Tho  English  Trasinass  for  a  numbor  of 
years  has  hoen  quite  profitable. 

This  represents  goods  purcliasod  from  tho  nation¬ 
al  Phonograph  Company  hy  the  affiliated  Erench 
concern.  The  business  in  franco  has  been  a  dis¬ 
appointment  to  us,  so  tliat  most  of  this  amount 
nay  be  considered 'as  stoeg  on  hand  which  later 
on  may  have  to  bo  disposed  of  at  some  sacrifioe. 
The  stock  of  the  Frcnhh  Company  is  also  owned 
by  tho  national  Company. 

This  represents  goods  purchased  from  tho  nation¬ 
al  Company  by  the  Gorman  concern,  which  for  a 
number  of  years  has-  done  and  is  now  doing  a 
profitable  business..  It  is  an  open  aooount, 

$505,551.50  carried  forward. 







standing  at  about  this  figure  and  the  stock 
of  She  German  Company  is.  also  owned  by  the 
national  Company. 

Shis  roprosonts  royalties  advanced  to  the  Herr 
Jorsoy  Patent  Company,  the  money  boing  needed 
by  Mr.  Edison  for  experimental  work. 

Phis  represents  goods  purchased  from  the  na¬ 
tional  Company  by  its. Foreign  Department  and 
supplied  to  agents  throughout  the  world,  in¬ 
cluding  the  national  Phonograph  Company  of  Aus¬ 
tralia  and  allied  concerns  in  Mexico  and  Argen¬ 
tine.  The  bulk  of  the  amount  -  probably  -80$ 
thereof  -  roprosonts  goods  shipped  to  the  Aus¬ 
tralian  Company,  whose  businoss  has  steadily 
increased  for  a  number  of  yoars  and  is  quite 
satisfactory.  All  of  those  foreign  concerns 
aro  owned  by  the  national  Phonograph  Company. 

Phis  itom  roprosonts  light,  boat,  power  and  rent 
fumiohod  the  Edison  Storage  Battery  Company  by 
tho  national  Company.  ,  The  Edison  Storage  Battery 
Company  is  a  separate  concern,  but  is  controlled 
by  Mr.  Edison. 

A  small,  amount  duo  from  Mrs.  Edison.  ' 

Shis  roprosonts  a  loan  to  Mr.  Edison,  $60,000 
of  which  has  non  boon  repaid.  . 

I  believe  that  all  of  the  above  accounts  aro  good, 
with  tho  possible  exception  of  the  amount  due  jts  from  the 
French  oonoem,  on  which,  as  stated,  there  may  bo  some  loss. 

Regarding  tho  itom  on  tho  same  sheet  "Balances  duo 
to  affiliated  companies",  amounting  on  February  28th,  1910, 
to  $535,035.71,  this  is  roprosentod  as  follows:- 

$526,922.72  This  roprosonts  money  borrowed  from  the  Edison 
Manufacturing  Company,  rnoBt  of  which  was  used 
for  the  erection  of  now  buildings  and  to  help 
out  the  Rational  Phonograph  Company  in  making 
tho  settlement  with  tho  IIov;  York  Phonograph 
Company,  amounting  to  $467,500. 

8,112.99  This  represents  Hr.  Edison's  current  oxperi- 
mental  account  with  tho  national  Phonograph 

_ _  Company. 


I!of erring  to  tho  Profit  and  loss  shoot' of  the  nation¬ 
al  Phonograph  Company,  also  left  with  you- this  morning,  the 
relative  Increase  in  tho  cost  of  phonographs  and  records  in 
1909-10  is  almost  entirely  attributable  to  the 'fact  that  in 
that  year  tho  number  of  records  listed  per  month  was  almost 
doubled  and  the  character  of  talent  uced  was  materially  imr 
provod.  There  was  also  a  substantial  increase  in  the  oost  of 
labor  and  materials. 

•.Referring  to  the  Blight  increase  in  factory  selling 
and  administrative  expenses  in  tho  year  1909-10,  over 

previous  years,  this  is  moro  than  accounted  for  by  cost  of 
advertising,  which,  due  to  industrial  conditions,  did  not 
turn  out  as  profitably  as  we  cxpoctod.  Every  effort  is 
made  to  reduce  expense  and  I  believe  the  organization  is  being 
run  on  as  economical  a  basis  as  possible . 

fho  above  I  bclievo  covers  all  the  points  you 
v/ishod  to  have  explained  regarding  those  statements,  but  if 
there  is  anything  else  that  requires  explanation  I  will  be 
glad  to  advise  you  fully  concerning  them. 

Regarding  the  probable  amoqnt  of  credit  necessary 
to  finance  the  proposed  selling  scheme  of  marketing  phono¬ 
graphs  by  a  house  to  house  canvass  and  free  demonstration 
•with  installation  sales,  this,  of  course,  is  very  difficult 
to  fix  with  certainty.  It  is  probable,  however,  that  the 
scheme  will  require  the  discounting  of  twSween  §200,000.  - 

and  §300,000.  per  month  for  throe  months,  involving  a  total 
credit  of  from  §600,000.  to  §900,000.  I  do  not  boliove  this 
limit  need  be  exceeded,,  because  as  the  plan  progresses  we 
will  probably  have  sufficient  capital  to  handle  any  oxgosb 
whioh  may  oomo  from  its  development.  If  any  further  credit 
will  have  to  be  acquired,  it  will  be  only  whon  the  plan.haB  . 
boon  demonstrated  to  bo  oommeriially  safe  and  practicable. 

Mr,  Stovons  asks, if  arrangements  could  bo  made 
for  the  national  Phonograph  Company  to  open  an  account  at 
one  or  moro  banks  by  whom  tho  nocoBsary  credit  might  be  given. 

Complying  pith  Mr.  Stevens'  request  I  bog  to  jiand 
you  herewith  a  list  ol1  our  jobbers  Pith  whom  pro  do  business 
If  it  would  bo  any  oonvoninnoe  to  you,  1  will  bo  glad  to 
havo  our  Credit  Department  give  you  a  statement  as  to  the 
credit  ratings  of  these  jobbers. 

Yours  very  truly, 

FID. ARK.  President. 



i/O/fy  September  20,  1910 

Regarding  the  report  of  Messrs  lybrand,  Ross  Bros.  & 
Montgomery,  on  examination  of  the  accounts  of  the  National  Phonograph 
Company,  Edison  Phonograph  Works,  Edison  Manufacturing  Company  and  Edison 
Business  Phonograph  Company  for  three  months,  ending  May  31st  1910  which 
you  sent  me  a  few  days  ago  for  perusal  and  Comments,  will  say  that  the 
consolidated  Estimated  Profit  and  loss'  Statement  forming  part  of  their 
report  represents  the  summary  of  the  individual  Estimated  Profit  and 
Loss  Statements  made  up  "by  ourselves  and  submitted  to  you  as  representing 
the  Estimated  Profits  or  losses  for  the  first  three  months  of  this  fiscal 
year,  resulting  as  follows:-  . 

National  Phonograph  Company 
Edison  Phonograph  Works 

Edison  Manufacturing  Company 

$  20,539.19  .§  87,688.01 

(Loss)  35,164.19  (Loss)  19,523.88 

As  stated  in  their  report,  notwithstanding  chat  the 
volume  of  business  shows  a  slight  increase  over  last  year,  there  has 
apparently. been  a  decrease  in  the  Gross  Profit,  largely  owing  to  fewer 
records  having  been  sold  during  1910  and  furthermore  the  General  Expenses 
for  the  first  quarter  of  this  year  exceed  what  they  were  last  year,* thus 
reducing  the  amount  of  Net  Profits. 

With  regard  to  the  suggestions  relative  to  changes 
in  our  present  system  of  accounts,  this  matter  was  talked  over  by 
Messrs.  Lybrand,  Eckert  and  myself  at  the  time  of  Mr.  Lybrand’s  last 
visit  here,  and  Mr.  Lybrand  was  told  ihat  there  were  certain  changes 
contemplated  in  the  event  of  the  suggested  consolidation  of  the  Companies, 
which  we  hoped  would  enable  us  to  give  clearer  and  more  definite  in¬ 
formation  than  has  been  given  in  the  past. 



Mr.  E.  1.  Dyer 

The  suggestion  of  using  carbon  cox^ies  of  typewritten 
hills  as  pages  of  a  Sales  Book,  means  the  purchase  of  about  five 
Elliott-Fiseher  hilling  machines  which,  fully  equipped  with  the  neces¬ 
sary  attachments,  would  amount  to  an  investment  of  about  §1,000.  The 
saving  in  clerical  work  is  problematical,  because  of  the  detailed 
information  required  on  the  statements  furnished  the  Credit  Department 
and  the  minute  distribution  we  must  keep  for  various  reports  and  records 
However,  this  is  a  matter  that  will  have  my  closest  attention  and  if 
I  can  satisfy  rnyself  the  benefits  will  warrant  the  investment,  I  will 
recommend  the  change. 

Regarding  the  suggestion  that  a  private  ledger  be  kept 
for  the  Asset  and  Liability,  the  Sales,  Labor  and  Material,  and  Expense 
accounts,  I  am  not  ready  to  agree  with  them  that  there  would  be  any 
saving  of  clerical  labor.  The  same  amount  of  posting  would  be  neces¬ 

sary,  as  the  same  number  of  entries  would  have  to  be  made  in  the  one 
book,  where  we  ncrw  have  four  books,  namely: 

1  -  General  Ledger,  containing  Capital  and  Investment  accounts  and 

the  controlling  accounts  of  Labor  and  Material,  Sales  and 
Expenses . 

2  -  one  ledger,  for  Labor  and  Material  only. 

3  -  one  ledger,  representing  Sales  only. 

4  -  an  Abstract,  showing  details  of  General  Expenses. 

By  using  one  book  only  it  would  mean  that  the  various  accounts  kept  in 
these  bookswould  have  to  be  kept  in  the  one  book  -with  the  Capital  and 
Investment  accounts,  which  would  be  more  unweildy  and  cumbersome. 

Regarding  the  suggestion  relative  to  the  trial  balance 
being  kept  in  book  form  instead  of  on  written  sheets  will  say  that  we 
told  Mr.  Lybrand  that  this  was  installed  by  Mr.  Eckert  and  used  up  to 
within  two  years  ago,  but  for  some  reason  unknown  to  Mr.  Eckert, 

Mr.  Buehler  ordered  it  discontinued  and  adopted  the  single  monthly  sheet 
as  at  present,  but  we  are  now  prepared  to  resume  the  use  of  the  trial 
balance  sheet  he  speaks  of,  because  when  Mr.  Eckert  showed  me  the  old 
record  I  immediately  saw  its  good  features  and  arranged  to  get  a  new 
supply  of  sheets,  which  we  now  have  and  will  use  hereafter. 

Regarding  the  suggestion  of  purchasing  through  one 
Company,  you  will  recall  that  at  one  of  the  recent  meetings  of  the 
Executive  Committee,  this  very  matter  was  brought  up  by  me  and  passed 
upon.  It  was  brought  up  in  connection  with  purchase  of  accessories  for 

With  respect  to  the  re-classification  of  expenses,  this 
is  a  matter  that  is  now  having  my  earnest  consideration,  to  be  effective 
after  the  consolidation  of  the  several  Companies  takes  place. 

Regarding  the  schedule  of  accounts  as  suggested  in  the 
last  paragraph  of  the  report,  this  will  be  a  natural  consequence  of  the 
standardizing  of  the  accounts,  and  every  person  interested  in  the  proper 
accounting  of  Labor  and  Material  will  be  furnished  with  such  schedule. 

:et  no.  3 



As  the  system  of  accounting  now  in  vogue  is  very 
thorough  and  transactions  between  the  several  companies  well  safe-guarded, 
any  changes  must  he  carefully  considered.  X  assure  you  that  I  will  give 
the  matter  careful  study  and  where  any  betterment  can  be  made,  and  saving 
can  be  affected,  it  will  be  done. 

E.  J.  Be 


piU'A  ,  " 

Oot.  15,  1910  . 

Mr.  I.  Walker, 

Orange,  If.  J. 

Dear  Sir: 

I  have  been  thinking  out  a  method  whereby  the  publio  oan 
get  more  amusement  out  of  the  phonograph  at  lees  ooat,  and  I  want 
you  to  try  it  out  here  in  the  Oranges.  I  want  you  to  rig  up  a 

wagon  so  as  to  carry  a  good  supply  of  the  latest  2-minute  records, 
to  be  sold  in  lots  of  three,  four,  five,  or  sir,  you  to  take  back 
from  the  oustomer  the  same  number  of  his  old  records  that  he  hcB 
tired  of  and  does  not  play,  and  loan  him  sir  good  selections  if 
he  purchases  three;  ten  records  if  he  purchases  four;  fifteon 
■'records  if  he  purchases  five,  or  twenty-two  rooords  if  ho  pur¬ 
chases  BX-r;  these  reoords  to  bo  loaned  him  for  a  month.  By 
thiB  means  he  will  get  the  records  at  a  cost  of  less  than  one- 
third  of  what  he  is  now  paying,  will  get  rid  of  the  records  he 
hashed  for  a  long  time,  and  gradually  accumulate  an  entirely  new 
supply-  The  idea  1b  that  he  oan  buy  a  few  reoords  every  month 
.'and  get  '.ft he  loan  of  other  records,  thUB  hearing  a  large  number  of 
^different  selections  at  veyy  small  cost.  Try  this  out  for  a  few 
months ,  and  keep  me  advised  as  to  your  progress. 

Yours  very  truly, 

Pj-e^>jcci  *  ’V-*.": 

Statement  dictated  Saturday  morning,  Oct.  22,1910. 

Yesterday,  Friday,  afternoon  I  met  Dr.  I.  H.  Baeke¬ 
land  at  .the  office  of  the  General  Baehelite  Company,  Ho. 
100  V/illiam  Street,  New  York  City.  This  office  is  in 
the  same  suite  of  offices  as  the  Boessler  3>  Hasslacher 
Chemical  Company.  A  young  man  named  May  or  Fay  was  in 
the  room  at  the  time  and  I  judged  that  he  was  connected 
with  the  Company,  or  possibly  he  may  have  been  Dr.  Baeke¬ 
land's  secretary.  Dr.  Baekeland  received  me  most  courte¬ 
ously.  He  said  that  he  had  substantially  completed  his 
experiments  on  baekelite  and  had  sold  his  German  patents 
to  one  of  the  large  German  Chemical  companies  and  had 
formed  the  General  Baekelite  Company  for  the  exploitation 
of  baekelite  in  this  country.  They  have  a  plant  at 
Perth  Amboy  with  a  capacity  of  500  pounds  daily.  He 
showed  me  various  samples  of  pure  baekelite  in  the  form 
of  balls  and  sticks,  and  also  samples  of  baekelite  com¬ 
positions,  such  as  baekelite  paper  and  mixtures  of 
baekelite  with  asbestos;  also  wood  dipped  in  baekelite 
and  given  a  high  polish;  also  pipe  stems  made  of  baeke- 


lite;  also  a  pool  toll  made  of  baekelite.  He  said 
that  the  Boonton  Rubber  Company  had  been  using  baeke- 
lite  for  two  or  more  years  in  making  heavy  insulations 
and  that  he  had  great  difficulty  in  educating  them  to 
the  proper  use  of  baekelite.  .He  also  showed  me  a 
very  heavy  insulator  made  of  baekelite  and  asbestos 
for  use  for  supporting  third  rails,  and.  I  understood 
that  some  of  these  we re  now  in  use  in  Hew  York.  I 
also  saw  a  very  intricate  and  wellmade  easting  of  a 
baekelite  composition,  comprising  the  yoke  and  brush 
supports  for  small  electric  motors.  I  told  Dr.  Baeke¬ 
land  that  we  had  made  a  number  of  experiments  with 
baekelite  for  making  phonograph  records,  but  had  not 
been  able  to  get  a  satisfactory  surface ,  owing  to 
the  formation  of  bubbles.  He  said  that  he  presumed 
Mr.  Aylsworth  had  made  these  experiments;  that  Hr. 
Aylsworth  was  a  member  of  his  Society,  and  that  he 
knew  Hr.  Aylsworth  and  had  a  high  regard  for  Hr. 
Aylsworth' s  ability  as  a  chemist,  but  that  undoubtedly 
Mr.  Aylsworth,  in  the  pressure  of  multifarious  dutieB 
was  not  able  to  devote  himself  continuously  to  any  one 
problem.  On  the  other  hand,  he,  Dr.  Baekeland,  had 
spent  a  number  of  years  in  developing  this  material 
and  knew  all  about  it.  He  said  he  had  been  working 
on  phonograph  records  of  the  disc  type  for  about  four 

years.  Hie  difficulties  encountered  by  him  was  in 
the  record  sticking  to  the  matrix,  and  he  showed  me 
a  number  of  samples  of  records  with  pieces  torn  off 
where  the  material  had  stuck  -to  the  matrix.  These 
were  made  of  baekelite  paper.  He  found  that  it 
was  possible  to  use  a  gradually  reduced  amount  of  the 
baekelite  with  the  paper,  and  he  said  that  towards  the 
end  of  his  experiments  he  found  that  the  amount  of 
.baekelite  that  was  necessary  was  so  absurdly  small 
that  it  worried  him  and  he  folt  that  there  would  be 
a  limited  sale  for  the  material.  Some  of  his  exper¬ 
iments  were  made  by  oiling  or  greasing  the  matrix, 
but  he  found  that  this  made  a  bad  surface.  In  some 
way,  which  he  did  not  explain,  he  had  overcome  these 
difficulties  and  produced  two  or  three  little 
records  about  6  inches  in  diameter,  and  also  one  or 
more  larger  records  which  he  said  represented  what 
he  thought  was  perfection.  1  did  not  hear  these 
records  played  and  could  not  judge  the  surface,  but 
he  said  that  the  surfaces  were  all  right  and  very 
smooth  and  that  he  played  them.  One  sample'  that  most 
interested  me  was  a  small  part  of  a  record  that  seem¬ 
ed  to  be  made  of  baekelite  and  finely  ground  material, 
and  looked  almost  exactly  like  our  diBcs.  It  had  a 

shiny  surface  ana  could  ho  broken  by  applying  con¬ 
siderable  pressure,  like  our  records.  Shis  particular 
sample  Dr.  Baekeland  did  not  think  very  much  of  and 
said  that  it  was  not  hard  enough.  The  other  records 
that  Dr.  Baekeland  had  were  enormously  tough.  He 
said  the  Victor  people  haa  approached  him  a  number  of 
times  and  that  at  one  of  the  meetings  of  the  Chemical 
Society  in  Pittsburg,  one  of  the  Victor  men  had  tried 
to  interest  him.  He  seemed  to  feel,  however,  that 
wo  wore  the  ones  to  deal  with.  I  gathered  from  him 
that  he  was  under  the  impression  that  we  intended  to 
use  a  shellac  material.  He  also  explained  his  idea 
for  making  cylindrical  records,  consisting  in  form¬ 
ing  a  tube  of  paper  pulp,  saturating  it  with  baekelite 
and  then  pressing  it  into  the  mold.  He  said  that  it 
could  bo  withdrawn  by  giving  it  enough  taper.  He 
said  that  he  had  an  application  in  the  Patent  Office 
on  a  phonograph  record  made  of,  or  containing, 
baekelite,  and  had  numerous  other  applications  cover¬ 
ing  details  that  he  had  worked  out.  One  of  these  de¬ 
tails  was  a  grinding  wheel  made  of  a  mixture  of  baeke¬ 
lite  and  an  abrasive  material.  I  saw  a  sample  of  this 
wheel  which  he  said  had  been  reported  on  very  favor¬ 
ably.  Another  detail  was  a  self- lubricating  bearing 
made  of  baekelite  and  graphite,  of  which  I  also  saw 
a  sample.  I  did  not  discuss  with  Dr.  Baekeland  very 


fully  the  question  of  any  terms  for  the  use  of  his 
inventions,  hut  he  said  that  his  idea  was  that  we 
should  huy  the  material  from  him  and  make  it  up  into 
records.  The  material  would  he  furnished  in  the  form 
of  haekelite  paper,  which  looked  like  loose  tar  paper 
and  had  a  strong  carbolic  acid  smell.  This,  he  said, 
was  the  A  material. ,  Another  form  for  supplying  us 
was  as  pulp  saturated  with  the  A  material,  which  we 
'could  work  up  in  blanks  ourselves.  He  said  his  idea 
was  not  to  make  the  records  -cheap,  hut  to  make  them 
hard  and  good  and  that  the  material  would  not  he  as 
cheap  as  other  materials  at  the  present  time  hut  that 
he  saw  his  way,  he  thought,  to  eventually  getting  the 
price  down  so  that  it  would  compete  with  any  material. 
He  offered  to  let  me  have  two  or  three  of  the  blanks 
so  that  we  could  make  an  experiment  with  them,  hut 
upon  reflection  he  said  that  he  thought  we  would  have 
a  great  deal  of  trouble,  because  the  right  kind  of  a 
man  to  handle  baelrelite  is  one  who  has  been  educated 
in  handling  that  material  alone  and  has  had  no  previous 
experience  with  other  plastic  materials,  like  shellac 
or  hard  rubber.  He  therefore  suggested  that  we  should 
send  up  one  of  our  men  to  see  the  records  made,  and- 
I  have  arranged  to  have  Mr.  Aiken  go  up  to  Yonkers  and 
witness  a  demonstration  on  Monday' afternoon. 


,  -  ‘td.  - 

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New  York,  Oct.  35,  1910 

/L*JU  CL^O-O  fyjLj 

National  Phonograph  Co., 

Orange,  N.  J. 


in  rmr  i  tS  rday  5  had  the  visit  of  your  Mr.  E ,  L.  Aiden, 

mSldin^  O?  we  har,shoW0d  Mm  how  we  proceed  in  the 

dn^anns^0^idifc  matf^C9S •  Today,  we  will  prepare  a  oouple  of 
dozen  of  blanks  so  that  he  may  try  himself  at  your  works.  (.  *  WiS?i  how!v!r>  t0  impress  you  with  the  fact  that  should 
position  of ^h^dinn  fUlly  Batis£act°ry,  we  can  modify  the  oom- 
hianVn  will  th  ,pd  CB  a2C0rdirlS  to  your  requirements.  With  the 

of^the^meohnni  na  i  b^mU°5  B™Pler  to  leave  you  as  much  as  possible 
wetnuln 5h?nS  1,  °f  th?  P^tlem,  and  furnish  you  with  the 
means  of 'annion  y  +  then  could  change  into  discs  or  cylinders  by 
woull  hfvePtheP^Lt  ,  The  latter  way  of  proceeding  7 


and  thus  better  apply  you£  8kilieInd°expeiience^e  mechanical  Slde' 

Very  truly  yours, 



1 '  *'  f’ 



ORANGE,  N.  J. 


October  29,1910 

In  checking  over  the  details  of  the  charges  against  \ 
Light  Heat  &  Power  account  for  first  six  months  Qf  this  fiscal 
year  as  compared  with  charges  for  corresponding  period  of  1909, 
to  account  for  the  difference  of  $12,322.96,  I  find  that  before 
the  hooks  were  closed  for . the  year  ending  Pebruary  28,  1910  a  \ 
hill  was  rendered  against  the.  Laboratory  for  electric  current 
supplied  from  December  20,  1909  t6  Pebruary  21,  1910  amounting 
to  $11,014.66.  Subsequent  to  /the  closing -of  the  books  for  the 
fiscal  year  1909-10 ^it  was  discovered- that  an  error 'had  been  made 
in  this  bill  and  that  the  charge  .  shouldrhave  been  $1,101.47 
instead'  of  *^11,014.66;  consequently  a.  credit  was  issued  under 
date  of  March  3by~1910  to  make  the  charge  rights  therefore  this 
year's  expenses  stand- charged  with  §9,913.19  on  account  of  this 
adjustment.  .  . 

'  I  also  find  that  bill  was  rendered  by  the  Works  against 
the  National  Phonograph  Company  under  date  of  July  31,  1909  for 
current  supplied. from  June  20, .1909  to  July  20,  1909  amounting 
to  $1,08B:.70,  which'/wafi  credited. on  the  Works  books  to  Light 
Heat  &  Power  acoount,  but .  erroneously'  charged  on  the  Hati onal 
Company* s  books  to  Improvement  and  General  Repairs  account, 
consequently  the  Light  Heat  &  Power  account  as  a  whole  for  the 
year  1909 -shows  this  amount  less  than  it  should.  I  further 
find  a  bill  rendered  against  the  Edison -Storage  Battery  Company 
under  da te-"0f  April  30,  1910  for.  steam  supplied  during  year 
ending 'Pebruary  28/  1910,.  amounting  to  $4,000.00.  This  bill 
should  have  been  rendered  Pebruary  28,-1910  so  as  to  have -been 
included  in  last  year's  business/ 

The  net  result  is  that  $6,998.89  of . the  difference  of 
$12,322.86  is  accounted  for  by  the  above  figures.  Of  the 
remaining' balance  about  $2,000.  represents'  -the  increased  cost  of 
Light,  Heat  &  Power 'at  the  Silver  lake  planti  'Last  year  we  were 
supplying  our.  own,  Light  Heat  &  Power  while  this;  year  it  is  being 
supplied  by  the  Edison  Cmehioal  Works.  %  The  remainder  of  the/ 
difference  amounting  to  about  §3,000,  Hr.  Weber  thinks  can  be 

SHEET  NO,  2  DATE,  10/29/l0NATIONAL  PHONOGRAPH  CO.  TO  JJr  t  Dygp 

accounted,  for  mostly  lay  increase  in  stock'  of  coaly  A  portion 
of  the  difference  may  he  accounted  for  by  too  low  a  price  being 
oharged  hy  the  Works,  for  current  supplied,  and  heat  furnished  the 
Edison  storage  Battery  Company  and  Departmehts  of  the' National 
Phonograph  Company: pnd  Edison  Manufacturing'Companyi  .The  . 

Edison  Phonograph  Works  are  .charging-  2-3/4^  per  kilowatt  hour, 
whereaB  the  Edison  Chemical  Works  are  .charging  for  current 
furnished  the  Silver  Lake  plant, 4'^^ per.  kilowatt  hour. 

Uessrs  Wilson  it  Weber  have  spent  some  time  with  me 
•  going  over  these  expenses'  and'  -Hr  i  Weher  has-'  already  started  to 
delve '  into,  the -  Power  iPlan't  condition  with  a  view  of  reducing 
current  expenses  if  possible  and1’ also  4:6  ^Optablisl^a  new  rate 
per  kilowatt  hour  for  Current  e'upplied-,1,;'i,fl! necessary,,;  as  well 
as  a  modification  of  the  charges’ heretofore' :made'  for,  steam 
furnished  the  Edi soil  Storage  Battery  Company-.. 

•  wA  short  time  ago  l1  had  prepared  a -complete,  list  of  , 
General  dispense  help  throughput  the  Eaotoiy  Departments  giving 
the  namesy  rates  and  vocations.  :.  This,  list  has  been  thoroughly 
gone  , over  by  Messrs*  Wllson.&  .Weber  and  notations,  made  by'  them 
for  Investigation  with  a  view  to  reducing  expenses  which' can 
possibly •  be .  reduced,.  -  ■  v  , 

If  th  ere  is. anything,  further.  I  can  do  to  assist  you 
in  oonnedtiori  with  - the:  list -of  salaipied  help  of  the  Administra¬ 
tive  Departments,  X,  am  "reidy  any  -time '.convenient,  to  you.  ,  I  thiflc 
the  expense  reports  X  have ' submitted  so;  fai*  have  already  had  a 
tendenqy  .'tb  chec.k  incurring  expense s'in  .oer tain  quarters  and 
when  the' Departmental .  Expens'd  reports  which  ,1  have  been  providing 
for,  and  which  scheme,. X,  am  ready-  to.  submit  to  you  for.'comment 
and  approval,  goes  into  affect,  we  will  be  enabled  to  show  the 
Department  heads  what.'  the  expenses  in  , their  respective .  Departments 
amount  to,  which  should * be ■ eonduslve'  to  the  reduction  of  expenses . 

Yours  very  tj 

Messrs.  Alton:  Wurth: 

Mr.  Edison  la  very  anxious  to  liaton  to  a  dlac 
rocord  (commercial  product)  of  ovory  solootlon  for  which  we  have  thua 
far  made  masters,  in  order  to  determine  which  particular  selections 
aro,  in  his  opinion,  suitable  for  the  first  list  wo  are  to  issue.  Is 
there  any  reason  why  some  of  those  records  cannot  he  gotten  out  daily 
until  the  entire  lot  is  completed,  and  if  not,  when  can  you  commence 
delivery  of  them  to  Ur.  Edison?  If  there  is  any  reason  why  the 
mattor  will  he  delayed,  kindly  adviao  me  what  it  is,  in  order  that 
stops  may  he  immediately  taken  to  overcome  it. 

Mr*  Edison  is  voiy  anxious  concerning  this  mattor,  and  it  should, 
therefore,  have  your  immediate  and  personal  attention. 

10/31/10.  o'.  H.  W.  * 

Copies  to  Messrs.  Edison:  Dyer:  V/.Millor. 

Hovember  9,  1910, 

Wagon  Orders  Received 



Awaiting  Signature 



24  220 

W„go„»  Shipped  W  '  |„2 

Unfilled  orders (Keystpne)  37 
Shipped  by  Bieh.1  .  00 

Unfilled  orders (Biehl)  58  ■ 

Total  (Equals  Countersigned  Contracts)  167 

Total  Unfilled  orders 





Awaiting  Signature 

104  at  6  per  day  -  About  18  nays 
or  Approximately  December  1st. 

Mr.  Byer:- 

I  saw  "x.  Edison  this  morning  and  ho  wants 
mo  to  try  out  another  scheme,  i.e.,  repair  or  exchange 
reproducers  on  old  machines,  sell  records  at  as  low 
as  lO^  each,  or  take  hack  old  records  and  make  an  allow¬ 
ance  of  as  much  as  25 /5  on  the  purchase  of  a  new  35/5 
record;  in  other  words,  make  an  offer  whereby  customers 
will  get  records  by  paying  10/5,  15/5,  20/5,  25/5,  or  35/5, 
making  up  boxes  of  the  lowest  sellers  at  the  lowest 
price  and  bettor  sellers  at  the  higher  prices,  all  2-m, 
cutout  records  except  at  the  35/5^  price,  which  will  be  the 
late  2-m,  records. 

She  above  is  simply  a  suggestion  and  is  to 
be  put  in  the  form  of  a  definite  offer,  after  the 
details  have  been  worked  out,  and  tried  on  a  now  set 
of  people  -  say  in  Paterson,  getting  a  list  of  address¬ 
es  from  O' Den.  He  told  me  to  work  out  something  and 
then  when  I  go  out,  to  be  prepared  to  do  the  above  in 
addition  to  demonstrating  attachments  and  selling 
Amberol  records.  He  wants  to  have  enough  offers  to 
make  to  keep  a  wagon  going  month  after  month. 

I ^did  not  find  it  convenient  to  say  anything 
about  coming  hack  to  the  office  after  ho  told  me  what 
ho  wanted  me  to  do. 

I.  >'/.  Walker. 


TIME  SPENT  IN .PASSAIC  —  10.30  to  5.30 



CALL  NO.  1. 

Mrs.  Flynn  (1st  oall)  120  Jefferson  St.  Has  attachment.  Left 

CALL  NO.  2. 

Mrs.  ^aohler  (1st  oall)  Moved. 

CALL  NO.  3. 

Mrs.  De  Moy  (1st  oall)  66  Hamilton  Ave.  Not  home. 

CALL  NO.  4. 

Mrs.  Hardifer  (1st  oall)  Phonograph  she  had  did  not  belong  to 
her.  Not  now  in  her  possession. 

CALL  HO.  5. 

Mrs.  Gutzway  (1st  oall)  67  Jaokson  St.  Left  Records.  Has  Standard 
without  attachment.  Don't  play  phonograph  any  more.  Have  bought  piano 
on  instalments  and  paying  for  that. 

CALL  NO.  6. 

Mrs.  Goetsohius  (1st  oall)  214  Central  Ave.  Left  demonstrating  out¬ 
fit  and  also  records.  Got  list  of  his  reoords.  She  has  31  Edison  and  13 
Columbia  reoords.  Said  she  had  reoeived  three  oeptifioates  for  selling 

CALL  NO.  7. 

Mr.  Bailey  (ls£  oall)  97  Summer  St.  He  has  attachment,  left  reoords. 
CALL  NO.  8. 

Mrs.  Miller  (1st  Call)  287  Sherman  St.  The  phonograph  she  previous¬ 
ly  had  was  loaned  her.  She  bought  a  lot  of  reoords  and  had  attachment  put 
on  and  the  party  took  it  away.  Think  of  getting  another  maohine  will 

tell  O'Dea. 


0411  HO.  9. 

Jotm  M:  Olsen  (1st  oall)  177  Summer  St.  left  records.  He  has 
attachment.  Got  list  of  his  records.  ae  gave  me  address  of  man  who 
intends  to  buy  Phonograph.  Will  tell  O'Bea. 

0.-111  HO.  10. 

Mr.  Perwerda  (1st  oall)  108  Burgess  PI.  left  demonstrating  outfit 
and  also  records.  Got  list  of  his  reoora  He  has  66  Edison,  3  Columbia 
and  1  Paths  the  latter  bought  from  Holland. 

0A11  HO.  11. 

Mrs.  landon,  (1st  oall)  92  Summer  St.  Moved. 

0411  HO.  12. 

Mrs.  Buyer  (1st  oall)  56  Van  Winkle  Ave.  Speaks  only  German. 

0411  HO.  13. 

Mrs.  Veline  (1st  oall)  Moved. 

0411  HO.  14. 

Mr.  Clarke  (1st  oall)  290  Madison  St.  Has  Home  and  160  records. 
Will  not  get  attaohment  or  buy  more  reoords.  Used  to  buy  reoords  by1 
the  dozen  and  did  not  wait  for  the  monthly  supplement.  Has  grown  tired 
of  phonograph  and  wants  to  sell  it.  Could  not  persuade  him  to  even  keep 
reoords  for  me  over  Sunday. 

0411  HO.  15. 

Mrs.  Knowlden  (1st  oall)  Moved. 

The  people  mentioned  on  this  and  future  reports  have  not  been  buying 
records  recently. 

I.  W.  V/41KEH. 

(pLsw-0  ' 

Mr.  Edison, 

December  5,  1910. 

In  answer  to  your  memorandum,  asking  about  how 
Babson  Bros,  made  collections,  'would  say  that  the  entire 
detail  is  a  secret  that  many  people  have  been  inquiring 
about  for  a  long  time. 

Now  the  sales  made  on  the  wa^on  are  somewhat 
different.  The  Babson  business  is  started  by  mail  and 
carried  on  by  mail.  The  purchaser  expects  all  business 

to  oe  done  ny  mail.  The  wagon  man  goes  right  to  the 

house,  and  in  many  cases  does  not  object  to  going  back 
in  the  hope  of  selling  records  besides  making  a  collection. 
Where  a  house  is  too  far  away  and  collections  by  mail  would 
be_ advisable ,  we  have  recommended  to  Mr.  Wagon  Dealer  that 
he  leave  a  supply  of  cards  like  the  one  attached,  and  urge 
the  customer  to  send  the  money  in  the  same  manner  as  to  Bahson. 

Babson  Bros,  have  an  advantage  over  the  individual 
collection  of  the  smaller  dealer.  They  have  a  bureau  that 
makes  a  science  of  it  and  does  nothing  else.  The  average 
small  dealer  tries  to  devote  part  of  his  time  to  collecting 
and  selling,  with  the  result  that  he  doesn't  make  a  great 
success  of  either. 

Where  business  is  big  enough  to  let  collectors  make 
that  their  business,  this  part  of  the  business'  is  always  much 

C.  jj^OODWIN. 



New  York,  Deo.  13,  1910. 

Mr.  Frank  L.  Dyer,  Pres., 

National  Phonograph  Co., 

Orange,  N.J, 

Dear  Mr.  Dyer;- 

As  I  stated  to  you  verbally  during>^ur  interview  on  Dec. 

37th,  the  proposition  you  offered  was  so  different  from  the  one  which 
I  had  submitted  to  the  Board  of  Directors  that  the  whole  matter  hadf 
to  be  taken  up  anew. 

I  have  been  thinking  over  the  subject  very  carefully  and 
believe  that  I  have  a  proposition  which  I  could  recommend  to  the  Board 
of  Directors.  .Before  doing  so,  I  want  to  know  how  it  meets  your  views. 

Without  going  into  legal  phraseology  I  shall  limit  myself  to 
outline  the  subjeot  as  follows: 

The  General  Bakelite  Co,,  will  grant  to  the  National  Phono¬ 
graph  Co.,  a  non-exclusive  license  for  the  utilization  of  BAKELITE  in 
the  manufacture  of  sound  records  under  the  following  terms; 

The  N.P.  Co.,  to  pay  the  G.B.  Co.,  §7000  in  oash  on  the 
signature  of  the  contract. 

The  N.P.  Co.,  to  purchase  the  raw  material  (Solid  A,  Liquid 
A  and  B)  from  the  G.B.  Co.,  at  a  price  of  350  per  pound  f.o.b.  works, 
Perth  Amboy;  with  the  stipulation  that  in  oase  the  raw  materials  used 
in  the  manufacture  of  this  BAKELITE  increase  in  price,  there  shall  be 
a  corresponding  increase  in  the  selling  price  of  BAKELITE. 

This  license  will  hold  good  as  long  as  the  N.P.  Co.,  pur¬ 
chases  at  least  53  tons  of  BAKELITE  for  each  calender  year  as  long  as 

Mr.  F.  L.  Dyer,  #3  Deo.  13,  1910 

the  patents  last. 

For  BAKELITE  mixtures  ready  for  moulding  the  G.  B.  Co., 
will  charge  350  for  every  pound  of  BAKELITE  contained  in  the  mixture 
plus  the  net  cost  of  the  filling  materials  contained  in  the  mixtures 
augmented  10$  of  the  net  cost  of  the  filling  materials,  augmentedlwith 
33  1/3 $  of  the  total  calculated  cost  of  the  mixture.  This  addition 
of  l/3  ia  made  to  compensate  us  for  manufacturing  expenses  in  com¬ 
pounding  the  materials  ready  for  use.  This  does  not  mean,  however, 
the  material  in  shaped  in  disc  form,  nor  in  paper  form,  but  mainly 
the  mixtures, made  either  dry  or  wet, ready  for  further  use,  and  de¬ 
livered  in  powder,  in  granulations  or  in  cakes. 

The  N.  P.  Co.,  shall  have  the  right  to  terminate  this  con¬ 
tract  by  notifying  the  G.  B.  Co.,  at  least  one  month  in  advance  be¬ 
fore  the  expiration  of  the  calender  year. 

The  general  terms  of  the  license  will  include  stipulations 
contained  in  the  printed  license  affixed  to  this  letter. 

I  beg  to  add  that  I  think  we  oould  arrange  the  matter  of 
exportation,  but  in  that  oase  we  oould  not  protect  you  against  im¬ 
portation,  which  then  of  course  wgtild  naturally  occur  as  a  matter 
of  reciprocity.  This  of  oourse  oould  be  discussed  later  on. 


Yours  very  truly, 


Dr.  1.  a.  Baekeland, 

General  3aoke li'to  Company, 

100  V/i Ilian  St.  ,  How  York, 
lily  doer  Dr-  Baekeland: 

Your  favor  of  the  -15th  inst.  was  duly 
received,  "but  I  hove  been  away  from  my  office  a  good  doal, 
which  lias  prevented  ray  making  a  definite  answer. 

As  I  told  you,  wo  have  experimented  with  all  sorts 
of  materials,  some  of  which  seem  to  he  very  good  for  our  purr 
pose,  and  it  might  possibly  develop  that  even  if  we  met  with 
entire  success  in  experimenting  with  Baekelite  wo  would  con¬ 
clude  not  to  use  it.  At  the  same  time.,  one  of  our  policies 
has  "been  to  experiment  with  all  available  materials  and  to 
use  the  one  that  wo  think  best  under  the  circumstances.  Por 
thin  reason  1  wa3  anxious  to  experiment  with  Baekelite  to  see 
if  it  could  be  developed  to  a  commercially  satisfactory  extont, 
but  1  did  not  want  to  have  tho  company  go  to  the  expense,  of 
making  those' experiments  unless  there  was  some  definite  under¬ 
standing  that  if  the  experiments  were  a  success  we  would  be 
in  position  to  commercially  handle  the  proposition.  1'hero- 

2  12/22/10,  NATIONAL  phonograph  company  Dr.  L.  H.  Baokelund. 

foro  I  suggested  to  you  you  givo  us  an  option  for  one 
year  from  January  1,  1911,  to  make  experiments  with  Baokolito 
in  the  attempt  to  develop  a  commercially  praoticahle  process 
with  that  material  and  for  which  option  wc  would  pay  you  the 
aura  of  $5,000.00.  In  case  our  experiments  witli  Baekolito 
wore  successful  we  would  then  exercise  the  option  not  later 
than  January  1,  1912,  either  by  paying  you  a  lump  stud  for  a 
.  non-oxclusivo  license  to  use  the  matorial  under  your  patents 
or  olao  to  buy  the  matorial  from  you  at  a  definite  figure.  .  I 
wanted  to  havo  this  latter  provision  made  optional  because 
from  our  oxporionco  in  the  phonograph  art  I  believe  that  wo 
would  find  it  necessary  to  make  changes  arid  refinements  of 
your  material  which  we  alone  would  be  in  position  to  produce, 
satisfactorily,  and  I  therefore  would  not  wish  to  bo  bound 
hard  and.  fast  to  purchase  materials  from  you  if  wo  concluded 
that  wo  could  make  it  better  ourselves.  At  the  same  time 
this  v/ould  bo  merely' an  option  on  our  part  to  make  the  material 
and  of  course  if  wo  could  got  it  from  you  of  satisfactory 
quality  and  price  then  wo  would  naturally  buy  if. from  your 
company.  I  still  do  not  soo ‘why  such  a  plan  as  this  would 
not  be  ontirely  fair,  because  the  suggested  arrangomont  pro¬ 
vides  only  for  a  non-oxclusivo  liconee,  giving  you  the  right 
to  negotiate  with  other  talking  machine  companies  if  we 
popularise  the  use  of  Baokolito.  Your  suggested  arrangement 
does  not  seem  to  mo  to  be  quito  fair,  because  you  merely  offer 
to  sell  us  material  at  a  price  that  I  presume  is  designed  to 
give  you  a  fair  profit,  and  I  understand  it  is:  ope  of  the 
purpo:  es  of.  the  Gonoral  Baekelito  Company  to  introduce  Baekelito 

3  12/22/10.  NAT.ONAL  PHONOGRAPH  COMPANY  Dr .  BftOkOldnd. 

in  this  way  in  connection  with  any  arts  that  raay  utilise  it; 
therefore  I  cannot  understand  why  you  should  expect  us  to  pay 
$7,000.00  for  on  option  if  at  the  end  of  the  poriod  we  find 
oursolves  no  hotter  off  than  any  other  manufacturer  soeking 
to  make  commercial  uso  of  Baekelito. 

I  wish  you  would  give  this  matter  careful  thought, 
and  I  hope  you. will  find  a  way  to  moot  me  along  the  linos  of 
my  suggestion. 

Yours  very  truly, 

P  ID/10 



•  December  23rd,  1910 

Mr#  E,  I.  Dyer: 

During  my  recent  visit  to  eleven  jobbing  cities,  in 
which.  I  discussed,  business  conditions  generally  with  twenty-two 
jobbers,  would  state  that  in  but  very  few  instances  were  the  trade 
entirely  satisfied  with  the  amount  of  business  they  were  obtaining 
from  Edison  goods  -  the  exoeptions  being  I.  H.  Lueker,  Minneapolis-' 
Hanger  &  Blish,  Des  Moines;  Sehmelzer  Arms  Co.-,  Kansas  City,  who 
all  stated  their  business  in  our  line  was  excellent,  and  that  they 
were  entirely  satisfied  with  the  results  they  were  obtaining. 

,  .  It  would  appear  that  the  general  merchandise  lines 

were  not  up  to  other  years,  the  piano  people  particularly  complain- 
ing  at  lessened  sales  and  the  very  slow  collections. 

....  would  seem  that  our  line  was  probably  in  worse 

condition  than  at  any  time  in  the  past  three  years,  when  taking 
into  consideration  the  period  of  the  year,  6 

'  is  in  a  great  measure  due  to  the  fact  that  the 

trade  are  wondering  what  we  are  going  to  put  out  next,  and  have 
been  buying  only  what  appeared  to  be  absolutely  necessary  to  keep 
.  their  Btooks  in  fair  condition. 

,.  ..  It  is  certain  that  the  Edison  reoord  stocks  are 

lighter  than  they  have  ever  heen« 

She  demand  for  Victor  goods  haB  very  materially  in¬ 
creased,  and  in. the  jobbing  cities  which  1  visited  all  those  who 
were  handling  the  Victor  line  were  complaining  about  not  being  able 
to  obtain  a  sufficient  supply  from  the  factory,  particularly  Viot- 
rolas  of  all  three  types,  Shis  does  not  appear  to  be  the  case, 
however,  with  the  cheaper  priced  disc  machines.  It  looks  to 

me  as  though  the  cities  were  "Victrola  crazy"  and  our  Amberola 
which  was  intended  to  take  care  of  some  of  this  demand  has  failed, 
owing  to  the  machine  itself  not  proving  entirely  satisfactory  to  the 
jobbers,  dealers  and  the  general  public,  as  a  great  deal  of  trouble 
has  been  experienced  with  the  reproducer  and  which  still  outs  the 
records,  and, the  fact  that  the  machine  in  a  great  many  oases  is 
^  *kk8  'krad.e  has  “been  unable  to  overcome  th 4s e  dif¬ 
ficulties  in  the  machine.  In  its  present  form  it  does  not  seem 
to  compare  favorahly  with  the  Victrola,  nor  would  it  seem  possible 
to  ever  make  it  s^ell  to  a  similar  extent  unless  we  can  provide  Grand 
Opera  records  of  a  similar  character  to  that  supplied  by  the  com¬ 
peting  Company.  -  J  ■  • 


Mr.  E.  L,  Dyer.  Page  Do.  2. 

This  appears  to  be  praotioally  impossible  with  our  present  line, 
and  the  necessity  for  haste  in  producing  the  disc  machine  and 
record  is  more  apparent  than  ever. 

The  trade  as  a  whole  are  apparently  making  very 
little  1SBSX5  effort  to  obtain  Edison  business  in  the -larger  cities, 
taking  only  that  which  comes  to  them,  and  we  have  only  a  few  job¬ 
bers  that  I  visited  that  are  making  an  earnest  effort  to  travel  the 
territory  and  secure  the  dealers  business. 

The  jobber  and  dealer  alike  are  dissatisfied,  owing 
to  the  fact  that  they  are  compelled  to  carry  the  two  minute  record 
which  is  not  selling  and  is  increasing  their  difficulties  each 
month  by  trying  to  find  a  place  to  stock  them. 

It  would  also  appear  true  that  our  machines  being 
more  complicated,  that  it  is  more  difficult  for  the  average 
dealer  to  handle  and  keep  in  proper  condition,  and  he  is  evidently 
working  along  the  lines  of  the  least  resistance  by  handling  the 
disc  goods,  which  do  not  appear  to  be  giving  him  any  serious'  amount 
of  trouble  mechanically. 

It  will  be  necessary  for  us  to  seriously  consider 
withdrawing  certain  types  of  our  machines  which  are  equiuped  with 
the  straight  horn,  as  the  Cygnet  horn  has  the  call,  and  the  with¬ 
drawal  of  the  straight  horn  types  would  be  an  advantage  to  the  .en¬ 
tire  trade,  as  they  would  have  to  carry  a  less  number  of  types  in 
order  to  show  the  full  line. 

#e  have  also  to  reckon  with  the  entire  two  minute 
list  which  is  now  lying  dorkant,  and  we  should  discontinue  listing 
ten  selections  each  month  and  should  not  make  over  five  at  the 
most,  and  even  then,  this  will  be  too  many  in  a  very  short  time. 

The  sooner  we  face  the  situation  and  entirely  withdraw  the  two  min¬ 
ute  list,  the  better  will  be  our  results  with  the  entire  trade, 
as  they  are  disgruntled  and  dissatisfied. 

We  should  also  very  shortly  consider  the  advisability 
of  making  only  four  minute  type  machines,  thereby  obviating  to  a 
great  extent  the  possibility  of  the  machines  not  working  satisfact¬ 
orily  in  the  hands  of  the  inexperienced  consumer,  to  say  nothing 
of  the  ignorant  dealer  who  is  trying  to  show  them. 

My  attention  has. been  called  to  the  fact  that  this 
would  knock  out  our  recording  feature,  which  is  one  of  the  talking 
points,  but  which-  is  being  very  little  used,  so  far  as  I  can  deter- 

. .  o  .  .  i:h®  model  "0"  reproducer  and  the  Priumph  machine  in 

n*  +£re£enJi  ±B  Siting  the  greatest  satisfaction,  and  is  one 

of  the  heat  things  we  have  done  in  a  long  while,  very  materially 
increasing  the  demand  for  that  type  machine.  have  received  num- 
erous  suggestions  that  we  plan  to  get  out  as  an  extra  only,  the 
2  reProa-UC9r  with  the  necessary  arms  for  the  Home  and 
Standard. types,  avoiding  equipping  the  machines  with  them  as  sent 
out  from  the  factory,  and  peimitting  the  trade  to  sell  the  repro-  • 
duoer  as  an  extra  only,  • 

.  .  .  '  I- heard  very  little  about  the  Idella,  and  while  it 

ought  to  be  a  very  satisfactory  machine,  it  does  not  appear  to  be 
selling  in  any  quantity,  and  there  is  a  demand  for  a  cheaper  con¬ 
cealed  horn  machine  than  the  Amberola,  but  if  it  cannot  be  made 
more  satisfactorily  than  that  type,  it  ought  not  to  be  made  at  all. 

m  tra£e  £,s  ver7  anxiously  awaiting  some  official  ' 

.  announcement  relative  to  the  -new  disc  goods,  and  if  we  can  produoe 
something  which  can  demonstrated  as  better  than  that  now  manufact¬ 
ured  by  our  competitors,  I  feel  no  hesitancy  in  saying  we  can  dis¬ 
pose  of  all  the  factory  can  make,  at  least  for  a  period  of  time. 

Should  the  Victor  Company  demand  that  their  distrlb- 
£rom  han^Lille  any  other  disc  line  as  called  for  in 
^tracts ,  it  does  not  appear  we  will  have  any 
1  obtaining  proper  jobbing  representation  in  Detroit, 
foiedo,  Chicago,  Milwaukee,  Minneapolis,  St.  Paul,  either  Omaha 
or  linooin,  Des  Moines,  st.  Louis,  Indianapolis,  Peoria  -  Kansas 
City  being  on  the  doubtful  list,  as  the  J.  K.  Jenkins1  sons  Music 
Oo-*  that  City  show  a  decided  preference  for  the  other  line,  and 
thf  Sclunelzer  Arms  Co.  some  xanntidss  excellent 
reason  for  discontinuing  the  Victor  line.  .phe  last  mentioned  com- 
reSen?12  opened  a  branch  in  Oklahoma  City,  taking  over 
the  Edison  stock  formerly  in  the  hands  of  Smith's  Phonograph  Co,. 

Victor  distributors,  so  that  these  remarks  apply  to 
that  City  also, 

held  in  high  esteem  by  the  trade.,  but  the  confidence  in  our  goods 
and  our  policies  have  been  somewhat  shaken  by  the  conditions  sur- 
rounding  our  several  exchanges,  and  the  goods  themselves  are.  not 
selling  any  too  readily,  but  I  am  oonvinoed  that  the  line  can  be 
restored  to  the  place  it  held  if  the  product  can  be  brought  to  a 
state  nearer  perfection.  •  6 

She  present  cylinder  record  must  be  very  materially 
as  question  of  breakage  is  a  very  important  one; 
and  if  the  cause  of  numerour  complaints  between  the  jobber  and  dealer 

Page  Ho.  4. 

Hr.  p.  1.  Dyer. 

and  iB  oreating  dissatisfaction. 

Reports  from  our  traveling  salesmen  during  our 
recent  meeting  in  Chicago  very  dearly  indicates  that  the  U.  s. 
Phonograph,  line  with  its  indestructible  record  and  new  type  cylinder 
machines  is  cutting  very  little  figure  in  the  trade,  hut  there  is 
a  very  decided  rumor  that  when  we  announce  our  disc,  that  there  is 
a  possibility  of  the  Victor  Company  taking  over  the  other  cylinder 
line.,  and  if  that  is  true,  it  would  look  as  though  we  would  have 
a  very  lively  fight  on  our  hands, 

.  ,  I?  la  absolutely  oertain  that  the  jobbers  who  are 

now  handling,  both  lines  cannot  not  successfully  from  a  financial 
point  of  view  travel  their  territories  as  they  are  now  doing  with 
the  Victor  line  alone,  as  the  larger  percentage  of  their  salesmens 
business  is  with  the  Edison  goods,  and  this  no  doubt  will  be  a 
considerabie  faotor  in  the  jobbers  deciding  as  to  their  future  policy 
regarding  our  line, 

_  Mr.  George  Ornstine  of  the  Victor  Co,,  has  been  en¬ 

deavoring  to. line  up  some  of  the  jobbers  and  find  out  where  they 
stood  regarding  the  Victor  goods  when  our  new  diBc  was  offered  to 
tnem,  and  he  recently  tried  to  induce  Mr.  luoker,  of  Minneapolis, 
to  throw  out  Edison  goods  -  Mr.  Lucker  telling  him  to  "go  to  the 
DeI  ^  Healso  wanted  Mr.  luoker  to  establish  an  exclusive 
retail, Btore  for  Victor  goods  in  St,  Paul,  where  Hr.  luoker's 
brother  is  now  operating,  and  handling  both  lines,  but  selling  more 
Edison  goods  than  he  is  Victor.  Ihere  is  a  peculiar  condition 
,  s  i?  Minneapolis  and  St.-  Paul,  as  in  the  Minneapolis  store 
of  luoker  their  retail  is  about  80$  Victor  and  30$  Edison*  while 
in  their  Btore  in  St,  Paul  on  the  Saturday  proceeding  my  arrival 
there  were  eleven  outfits  sold,  all  being  Edison  machines  -  not 
one  being  a  Victor, 

luoker  has  made  the  positive  statement  to  me  that  he  will  stay 
with  the  Rational  Phonograph  Company,  and  1  personally  have  praotn 
ically  promised  him  to  permit  him  to  distribute  our  goods  from  the 
Pwin  Cities  should  it  come  to  a  show-down  and  w.  j.  Dyer  &  Bro.  dec¬ 
ided  to  continue  the  Victor  line  and  discontinue  ours. 

Koehler  &  Hinridhs  in  St.  Paul  are  nearly  ready  to  sell  their  Edison 
stock  and  have  made  some  -half  hearted  attempts,  and  when  I  saw  them 
a  few  days  ago  and  endeavored  to  obtain  further  information  from 

™y  stated  they  were  not  trying  to  Bell  out  at  this  time,  but- 
that  they  would  keep  me  posted  relative  to  this  particular  matter. 
What. I  wanted  to  do  was  to  have  lucker  purchase  their  Edison  stook 
and  beoome  a  jobber  in  St.  Paul,  so  we  might  be  provided  for  in' 
the  event  of  future  moves,-  and  X  think  possibly  this  may  be  brought 
about  at  some  time  in  the  future.  “e 

Mr.  F.  I.  Dyer.  Page  Ho.  5. 

It  appears  that  the  Victor  Company  have  recently 
established  the  Metropolitan  Music  Co.,  Minneapolis,  Minn., 
which  is  a  branch  of  W.  J.  Dyer  &  Bro.,  as  a  distributor  on  a  basis 
of  a  §1600,  order,  granting  them  the  •maximum  discounts,  Shis  is 
denied. by  Mr.  George  Malrs  of  the  Dyer'Coo,  but  Mr.  Buoker  assures 
me  he  received  a  letter  from  Mr.  George  Ornstine  that  the  Metro¬ 
politan  Music  Co,  were  enjoying  the  extreme  discounts  on  Victor  goods 

I  will  like  nothing  batter  than  to  have  samples  of 
the  new  disc  furnished  me  at  as  early  a  date  as  possible,  feeling 
confident  that  when  these  samples  are  shown,  and  our  policy  regard¬ 
ing  the  goods  is  announced,  I  will  have  no  difficulty  in  lining  up 
excellent  jobbing  representation  in  most  every  large  City  in  the 
country,  particularly  if  we  can  promise  some  protection  as  to  ter- 
±x  ritory,  There  is  certainly  a  demand  for  something  new  in 
the, Edison  line,  and  the  earlier  we  can  place  it  on  the  market  the 
better  it  will  be  for  us. 

In  conclusion  I  want  to  say  that  my  observation 
leads  meto  believe  that  the  two  minute  record  is  doomed,  as  the 
attachments  are  selling  in  great  numbers,  and  when  once  placed  upon 
our  machines  the  consumer  rarely  buys  a  two  minute  record,  wns  p 
want  to  impress  it  upon  you  that  the  Booner  we  take  a  rational  view 
of  this  two  minute  situation,  the  better  we  will  be  off. 

F.  E«  Dolbeer. 

Copies  to  - 

Mr.  T,  A.  Edison;  Mr.  C.  H.  Wilson;  Mr.  Wm.  Pelzer;  Mr,  D.C.  MoChes- 
ney;  Mr,  •£.  Weber;  Mr,  E,  J.  Berggren  and  Mr,  w.  Stevens,  •  • 


a/  . 

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Deo.  38,  1910. 

Mr.  Frank  L.  Dyer, 

President  of  National  Phonograph  Co., 

Orange,  N.  J. 

My  dear  Mr.  Dyer;- 

I  have  carefully  read  your  letter  of  December  the 
. nd.  Our  position  in  the  matter  is  simply  the  following:  If  we 
give  you  a  lioense  for  a  non-exclusive  uee  of  Bakelite  for  phonograph 
purposes,  then  we  exclude  the  possibility  of  giving  an  exclusive 
lioense  to  anybody  else.  Now  it  may  be  to  our  advantage  to  give  an 
exclusive  license,  as  this  particular  use  for  Bakelite  is  one  of  the 
applications  which  we  do  not  intedd  to  license  broad-cast.  If  Bake- 
lite  proves  to  be  unsuitable  or  unadvantageous  for  your  purpose,  then 
it  would  not  be  worth  while  for  you  bothering  with  it  at  all.  But  if 
on  the  contrary,  it  has  serious  advantages,  then  you  can  use  it,  if 
+  .r  ??ur  'I'0'*'3-!  output,  at  least  for  a  reasonable  amount  of  same, 
lhat  is  the  main  reason  why  I  propose  a  minimum  consumption  a  year. 

I  you  cannot  consume  as  much  Bakelite  as  the  mininum,  it  is  hardly 
worth  while  for  your  bothering  with  the  subject,  and  it  would  then 
seem  fair  that  we  should  not  be  prevented  from  making  an  exclusive 
arrangement  with  other  parties  who,  for  some  reason  or  another,  could 
use  Bakelite  to  goad  advantage  in  the  manufacture  of  sound  records. 

But  inuas ’ far  as  you  attach  such  a  great  importance  to 
the  alternative  of  preparing  your  own  Bakelite,  I  shall  do  my  best 
to  satisfy  you.  Therefore  I  propose  you  now  the  outlines  of  a 
license  withthatend  in  view. 

You  to  pay  us  one  cent  and  a  half  royalty  for  every  small' 
record  made  with  Bakelite  and  three  cents  for  the  large  records, 
payment  of  this  royalty  to  be  made  before  the  end  of  each  year,  and 
an  advance  payment  to  be  made  every  year,  #7,000  for  the  first  year, 

I 10, 000  for  the  second  year,  $15,000  for  the  third  year,  #30,000  for 
the  fourth  year  and  #30,000  for  every  following  year  until  the  expira¬ 
tion  of  the  patents,  this  aan  of  money  to  be  deducted  from  the  royalties 
to  be  paid  at  the- end  of  the  year.  In  other  terms,  you  begin  by 
paying  us  a  guarantee  at  the  beginning  of  the  year  and  this  guarantee 
is  deducted  from  the  royalties  due  by  the  end  of  the  year.  If  for 
some  reason  or  another  you  fail  to  pay  us  this  guarantee  at  the  begin¬ 
ning  of  the  year,  we  have  the  right  to  annul  this  license  for  the 
following  year,  whereas  you  have  a  right  to  renew  the  license  every 
year  at  your  own  option  by  payment  of  the  yearly  initial  guarantee, 
an?_Ahe  r°yalties  as  calculated  by  the  number  of  Bakelite  records 
sold  by  you. 

J  have  no  doub't  that  if  you  will  analyze  this  proposition 
you  will  find  it  standSion  its  own  merits,  and  I  shall  be  glad  to  talk 
over  the  subject  with  you  further  if  you  so  desire. 

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Ccrcj  COo^k- 

Horae  1000  11).  delivery  wagon  and  Horse  famished  by 

Oredit  of  three  months  given  Jobber  on  all  PhonogruphB 
sold  on  Installment;  demonstration  reoords  famished  free. 

After  all  expanses  deducted,  the  profit  is  to  he  divided 
33^>  to  national*  and  66#  to  Jobber.  Shis  33#  being  nsed  by 
national  to  wipe  out  their  investment.  national  pays  horse 

Jobber  puts  commission  men  on  at  30#  off  list,  or  Iobb. 
Haohinea  are  left -on  trial  from  five  to  eight  days*  as  convenient 
to  salesman;  every  likely  house  gets  a  phonograph,  people  shown 
how  to  work  it.  and  literature  left*  with  dosen  of  most  desirable 
reoords,  donoe  music,  eto.,  tho  very  oream,  we  manufacturing  them 
for  this  purpose. 

Salesman  gets  fresh  supply  goods  to  give  out  on  return 
over  another  route.  Ho  then  goes  over  first  rente  end  collects, 
end  uses  these  to  go  over  another  route,  returning  to  pick  tip 
second  route,  and  so  on. 

For  all  installment  sales.  Jobber  is  given  a  threo  months 
oredit,  on  receipt  of  duplicate  contract. 

City  and  Suburban  Selling  Plan. 

Sana  as  country  except  two  or  throe  salesman  to  one 
wagon,  going  ahead  to  got  permission  to  put  ono  machine  in  a  house, 
or  two  machines  like  an  Amberola  and  Home,  according  to  character 
of  people  and  house. 

We  wunt  to  demonstrate  the  Awiberola  in  heBt  housea. 

Samo  scheme  «a  to  credits  and  wagon  as  country  plan. 


iarga  display  posters  for  windows.  First  oloss  and 
as  good  or  "bettor  than  Ylotor. 

so  newspaper  advertising.  Kagasine  and  Rational  adver¬ 
tising.  Bemonstration  to  take  place  of  newspaper  advertising. 

Everything  in  advertising  pushed  on  Amiberola  and  high 
class  business  to  oheok  growth  of  Viotor  in  this  line,  beomiao 
if  onoe  it  goos  too  far,  wo  never  eoulft  regain,  heaanse  each  home 
with  a  Yiotor  is  the  demonstrator  and  future  salesman,  not  the 

store < 

Adopt  principle  of  not  cutting  out  rooorSa  hut  regulating 
thea  to  »  lowor  price  list  os  they  got  aim?  of  Bale. 

Cfoamittao  to  rejeat  any  doubtful  record;  If  its  good 
oubject,  have  it  taken  over  until  natiofiod. 

More  Duets,  ete.  more  "high  type  muaie"  like  the  Viator, 
whatever  that  means,  Which  a  large  number  of  dealers  say  they  want 
on  high  olasa  expensive  maohinea. 

Khis  Mad  of  music  woo  not  a  ottooeoa  with  uo  heoauee  we 
had  no  high  prices  machines.  rfc  aeons  to  me  wo  should  get  out 
some  BfiBolol  for  Amberola.  Separate  these  from  general  lint 

General  Proposition. 

Jobbers  may  hereafter  giro  four  months  eredit  to  / 
healers  on  installnont  business  only,  if  they  think  it  ya£e 
Or  they  can  givo  the  same  oredits  aa  they  give' with , 
Victor,  i.e.  we  no  longer  restrain  then  as  ta  credits. 

[FROM  C.E.  GOODWIN?  CA.  1910] 


i  A  'i 

fl)  Dealers  and  Jobbers  are  tremendously  overstocked. 
Hio  records  sell  slowly,  If  at  all.  Many  arc  selling  their 
stocks  at  7  and  0  cents  each.  Shore  is  much  price  cutting. 

^  f 2 )  Dealers  and  Jobbers  have  lost  or  are  losing  confi¬ 

dence  in  us.  They  think  wo  are  without  a  definite  policy 
and  think  wo  are  merely  waiting  for  the  ond,  when  we  will 
simply  throw  them  overboard. 

^  ^  ^ur  present  exchange  is  not  receiving  support, 

and  is  not  regarded  by  the  trade  as  offering  a  solution 
of  the  difficulties.  Even  cutting  the  price  to  P.0  cents 
will  not  bo  accepted  as  a  solution. 

(4.)  Owing  to  present  conditions  many  dealers  are 
f  drying  to  give  up..J:he  Edison-lino  entirely,  and  are  offor- 
'ing  their  stocks  for  sale  every  day.  It  is  currently 
rumored  that  within  a  short  time  many  bargain  stores,  such 
as  V/oolworth,  will  bo  selling  those  records  for  10  cents 
■.  oacil*  A  large  number  of  such  cases  has  just  been  reported/ 


Co  permit  jotters  to  take  advantage  of  the  two  cent 
credit  allowance,  provided  in  the  no w  exchange  proposition; 
in  the  purchase  of  Amtorol  records  instead  of  Standard 
records.  This  will  help  the  jotter,  tut  not  the  dealer. 

It  could  not  to  extended  to  the  dealer,  tccausc  in  that 
case  the  jotter  would  have  no  outlet  for  his  two  minute 


Co  permit  the  sale  of  Standard  records  on  the  500 
"special  list"  or  any  prior  cut-out  list,  at  20  cents  each. 
Hot  tolioved  to  tc  helpful  because  dealers  say  would  take 
too  long  to  reduce  stocks,  and  selling  these  records  in¬ 
dividually  'would  to  too  expensive.  Even  now  some  doalors 
are  selling  records  from  the  special  list  for  20  cents, 
without  insisting  upon  the  return  of  two  old  records, 
tut  without  success. 


Discontinue  making  two  minute  records,  tut  continue 
to  catalogue  them.  Ecduce  list  to  20  cents,  10  cents  to 
jotter  and  14  cents  to  dealer.  Cost  of  records,  without 

general  expense ,  is  5  S/100  each,  including  material, 
labor,  cartons  and  sundries. 

Same  objections  as  to  plan  Uo.  2,  but  not  the 
trouble  of  trying  to  sell  the  same  type  of  record  at  two 
different  prices.  One  report  is  that  dealers  are  tired 
and  oich  of  seeing  these  records  on  their  shelves,  the 
sales  are  so  slow. 

f  4 ) 

Sind  out  by  circulars  to  the  trade  What  thoir 
stocks  of  two  minute  records  are.  Intimate  that  we  have 
a  proposition  in  view  regarding  two  minute  records,  and 
that  success  in  carrying  it  out  require#  that  we  should 
have  accurate  information  regarding  their  two  minute 
stocks  by  December  1st,  and  that  the  proposition  will 
not  bo  extended  to  any  dealer  or  jobber  failing  to  report 
by  that  time.  If  the  stocks  are  not  too  numerous,  then; 



fa)  Hotify  the  trade  that  manufacture  of  two 
records  will  bo  discontinued  after  the  last  advor- 
list  is  sent  out. 

(b)  On  and  after  that  date  the  price  of  two 
minute  records  will  bo  20  cents  each  list,  (10  cents  to 
jobber  and  14  cents  to  dealer).  This  reduction,  however, 
need  not  be  made. 


(o)  Offer  to  take  1)001:,  any  two  minute  records 
f  £Ji  full  ore dit.  to  be  applied  record  for  record  on  our 
I  disk  goods  when  they  come  out.  Tell  what  our  disk  goods 

I  are.  Assuming  double  faced  disks  sell  for  75  cents  list 
or  37-1/2  cents  to  jobber,  this  would  mean  22-1/2  cents 
\net  on  goods  to  jobber. 

fd)  Tell  the  trade  that  we  intend  to  dispose  of 
returned  two  minute  ro cords  through  bargain  stores,  and 
"\b  sell  to  Y/oolworth  stores,  Soars,  Roebuck  h  Company,  and 

^  othors  for  G  and  10  cents  -  the  best  price1 2 3  obtainable. 

This  would  increaso  the  price  for  disks  to  over  30  cents. 


(l)  Offering  full  credit  for  returned  too 
minute  records  would  immediately  restore  confidence  in  us. 

(2)  Jobbers  and  Dealers  would  get  rid  of  stocks 
that  they  now  regard  as  hopeless,  and  without  a  loss  to 

(3)  ’Je  wo iild  have  an  immediate  market  for 
disk  records.  The  trade  having  credits  that  would  be 
utilized  only  in  our  disks,  would  have  to  buy  them,  and 
pay  the  balance  when  the  disks  come  out. 

(4)  Wo  would  forestall  tho  Victor  Company  in  any 
move  to  hurt  us,  because  Dealers  would  have  to  buy  ours. 

She  Victor  Company  could  not  afford  to  handle  tho  two- 
minuto  situation  thomsolves. 

(5)  A  largo  catalogue  would,  still  bo  left  of  two 
minute  numbers*  for  those  people  who  want  them.  fhey  could 
be  sold  at  a  profit  of  ten  cents,  because  all  talent  and 
mold  e:qionsos  have  already  been  absorbed. 

(6)  limiting  tho  cylinder  trade  to  Amberols, 

we  could  put  out  <er  four  minute  machine?  such  as  the  Standard 
type  hereafter,  which  would  be  simpler  to  build  and  operate. 

(7)  flie  two  minute  record  being  out  of  the  way, 
the  Arpborol  would  bo  an  easy  thing  to  sell. 


lfcU+4  U** — -k.  Uv^  C^^vj 

v^or*&.  VW^-w  CtstL 


^  (**&**, 




Seme  as  4,  except  gives  credit  on  Araborol  records, 
ordered  from  lists  at  least  two  months  old,  on  a  basis 
of  two  to  one.  Considering  that  advance  sales  have 
absorbed  talent  and  mold  expenses,  the  profit  on  two 
Ambcrols  on  sale  to  jobbers  would  bo  about  27  cents,  and 
allowing  a  credit  of  15  cents,  would  mean  12  cents,  or 
6  cents  each.  If  the  returned  record  could  be  sold  to 
'Joolworth  for  10  cents,  it  would  mean,  a  profit  of  11 
cents  each  on  the  Ambcrols.  Of  course,  such  a  plan  would 
be  based  absolutely  on  the  assurance  that  a  satisfactory 
arrangement  can  be  made  with  V/oolworth  and  similar  dis¬ 
tributors  to  take  the  returned  re  cords  in  large  numbers. 

If  this  is  done,  the  manufacture  of  two  minute  records 
would  probably  have  to  be  discontinued  entirely,  but 
the  trade  want  this  done,  and  there  would  still  be  a 
list  of  1400  such  records  to  choose  from,  by  those  who 
want  them. 

Shore  is  no  escaping  the  fact,  that  the  recent 
exchange  proposition  of  the  Victor  Company,  record  for 
record,  with  full  credit  allowance,  has  tremendously 
increased  the  feeling  of  dissatisfaction  towards  us, 
and  made  the  trade  even  more  apathetic. 


Under  existing  conditions  every  plan  for  getting  out  . 
printed  matter  of  any  kind,  for  trade  use  in.  stores  or  for 
redistribution  to  the  public,  'always  considers,  our  13,000 
Dealers- as  the  trade  unit.  Every  order  we  place  is 

-with  the  thought  that  we  may  he  called  upon'  to  supply  each 
one  of  the  13,000  Dealers.  If  a  desirable  form  coBts 
20  cents  each  we  multiply  it  by  13,000,  say  the  cost ‘is  to 
much  and  in  most  instances  don't  get  it  out.  Of,  because 
we  believe  that  a  large  percentage  of  our  Dealers  waste 
printed  matter,  we  do  not  gat  out  forms  that  are  really 
needed  by  our  good  Dealers. 

Eor  tha  purpose  of  argument  I  have  just  tabulated  some 
statistics,  about  our  Dealers  in  Uaw  Jersey.  They  are  sent 
herewith.  • 

These  figures  show  that  out  of  255  Dealers  only  about 
90  carry  an  adequate  stock  and  onlypabout. 120  carry  500  or 
more  Records.  At  least  half  of  the  255  are  indifferent  Dealers 
and  should  not  badconsidered  to  any  extant  in  planning 
an  expensive  plane  of  display  matter,  provided  we  can  find 
a  way  to  reach  the  good  Dealers : and  leave  out' the  poor  ones. 

I  believe  that  the  percentage  of  good  Dealers  is  greater  in 
Uew  yersey  than  the  average  of  tha  entire  oouhtry,  for  in  the 
South  the  Dealer  carrying  a  stock  of  1,000  Records  is  a  rarity. 
If  we  should  make  a  similar  tabulation  of  the  entire  country 
I  doubt  if  we  would  find  more  than  5,000  Dealers  carrying  a 
stock  of  500  Records.  Therefore,  if  we  can  find  a  better 
way  of  distributing  expensive  forms  than  the  present  one  of, 
delivering  through  Jobbers  we  can  get  out  many  more  first 
class. forms  than  at  present. 

we  can  utilize  to  advantage  the  information  after  we  get  it, 

I  would  urge  the  establishment  of  a  department  for  the  purpose 
.of  ascertaining  and  keeping  on  record*  here  the  exact  status 
.  and  all  detailed  information  about  every  one  of  our  Dealers. 

Even* though  we  do  sell  through  Jobbers,  there  is  no  reason 
why  wevS]}Suld  not  have  the  same  information  about'  every  Dealer 
that  wS'^B®  compelled  to  have  it  we  sold  to  Dealers  direct. 

Our  present  policy  of  practically  granting  exclusive  territory 
in / small  cities  and  towns  makes  this  information  very  essential. 

I  believe  that  we  ought  to  have  a  report  at  least  once  a  year 
on  every  Dealer,  even  as  to  hiS' credit,  if  it  can  be  had.  -We 
cannot  hope  to  greatly  increase  the  number  of  Dealers  now  signed 
up..  T^e  must  get  our  business  from  present  Dealers,  or  others  in 
the  same  towns  if  existing  ones  do  no t  measure  up  properly.  The 
Agreement  Department  is  gradually  acquiring  the  desired  information' 
about  Dealers,  but  it  only  gets  thei  information  where  some  other 
application  is  made  or  some  complication  arises.  It  cannot 
hope  to  get  it  complete  in  years  if  it  ever  gets  it. 



You  may  regard  the  foregoing  as  unnecessary  to  any  consid¬ 
eration  of  advertising  plans,  but  1  believe  it  to  be  vital,. 

The  more  1  study  Dealers  conditions  the  more  I  am  convinced 
of  the  great  waste  in  our  present  plan  of  attempting  to  get 
printed  matter  to  Dealers  through  Jobbers.  A  small  percentage 
of  the  Jobbers  distribute  it  wisely  and  advantageously.  We 
could  not  improve  on  their  methods.  The  remainder  do  it 
indifferently  or  not  at  all.  It  is  not  uncommon  to  hear  of 
Jobbers  using  costly  printed  matter  for  packing  in  place  of 
excelsior.  To  distribute  printed  matter  direct  to  Dealers 
would  involve  considerable  trouble  and  expense,  but  other 
large  companies  like  the  Eastman  Co.  and  the  Shermin-Wiiiiams  Co. 
do  it  with  a  list  of  dealers  at  least  as  large  as  ours. 

Companies  like  these. also  use  their  printed  matter  as  an 
effective  lever  to  jack  up  weak  dealers. 

A  special  department  such  as  I  have  suggested  could, 
in  mr  opinion,  perform  another  service  of  great  value  to 
us.  In  looking  over  the  reports  sent  in  by  salesmen 

(which  reports,  by  the  way.  Should  be  fully  utilized  in  keep¬ 
ing  up  our  knowledge  of  the  status  of  Dealers)  it  has  seemed 
to  me  that  there  was  in  them  an  opportunity  to  influence  the 
Dealer  in  another  way.,  With  the  right  kind  of  a  man  in  charge 
of  the  special  department,  a  separate  and  personally  signed 
letter  could  be  written  to  each  Dealer  after  the  salesman's 
report  came  in,  pointing  out  thi? ^condition  and  suggesting  this 
or  that  way  for  increasing  business.  I  know  that  the  salesmen 
do  this  to  a  large  extant, but  I  believe  that  a  letter  from  the 
main  office,  courteously  and  intelligently  written  and 
supplemented  with  suitable  printed  forms,  would  make  a  deep 
impression  on  the  recipients.  I  do  not  have  in  mind  any 
automatic  printed  letter  service,  but  a  specially  dictated  and 
specially  written  letter  in  each  case,  although  form  paragraphs 
could  be  used.  The  whe^e  department  including  salaries, 
stationery  and  postage  would  not  coBt  over  $10,000  a  year. 

Properly  conducted  it  would  be  worth  twenty  timesthat  amount. 

Such  a  department  must  be  a  part  of  our  business  at  some  time 
even  if  it  is  decided  not  to  create  it  now.  We  are  too  far 
away  from  direct  contact  with  our  Dealers.  We  do  not  know 
them  well  enough  ;and  they  do  not  know  us. 

.  Another  kind  of  work  .that  ought  to  have  attention  in 
planning  for  new  printed  matter  ,  is  that  to  be  done  in  the. 
citieB  and  towns  where  Dealers  are  located.  Our  salesmen 
do  what  they  can  but  their  time  it  too  limited  to  do  more  than 
call  on  Dealers,  talk  to  them  enthusiasticajjly  and  take  their 
orders.  They  have  no  time  for  work  that  will  interest  the  public 
in  our  goods,  although  a  few  of  them  dcKgiva  concerts  in  the  hotels 
that  are  very  valuable.  We  must^&SJTplans  for  arousing 
Interest  in  our  goods.  The  Amberola  will  now  help  in  large 

cities  but  much  more  can  be  done.  The  Dealer  in  the  small  - 
town  says  that  nobody  in  his  vicinity  is  now  interested  in  talk¬ 
ing  machines.  We  must,  get  some  interested  in  )this  place  before 
he  will  become  a  better  Dealer.  I  have  no  definite;  suggestions 

to  make  along  these  lines,  for  there  are  more  salesmanship 
than  advertising,  hut  I  believe  that  we  might  with  advantage 
spend  part  of  our  regular  advertising  appropriations  in  direct 
work  on  Dealers,  as  for  instance  paying  part  of  the  cost  of 
local  advertising,  putting  up  posters  with  their  names, 
special  circularizing,  etc.  1  am  convinced  that  our 
magazine  advertising  does  not  benefit  Dealers  in  small  places 
to  any  great  extent,  and  that  we  must  do  some  advertising 
nearer  to  the  small  Dealers.  This  special  advertising  has 
some  complications  but  a  little  study  might  cause  them  to 

With  a  more  exact  knowledge  of  the  status  of  every  Dealer, 
we  could  greatly  strengthen  the  work  of  the  salesmen.  Wow, 
when  a  salesman  wants  this  or  that  special  direct  service 
granted  to  a  Dealer,  we  are  in  doubt  whether  the  salesman  is 
over  zealous  or  whether  the  Dealer  really  wants  the  service. 

Wo  doubt  would  exist  if  we  knew  all  about  the  Dealer.  Then, 
too,  salesmen  would  gat  batter  results  if  they  oould  offer  certain 
inducements  to  a  Dealer  conditioned  upon  putting  in  a  proper 
stock.  An  offer  to  pay  part  of  the  cost  of  advertising  in 
local  papers,  to  put  up  some  posters,  to  circularize  from  here 
a  special  list  of  names,  to  furnish  electrotypes  of  illustrations 
or.  complete  advertisements,  to  ship  a  special  supply  of  printed 
matter,  to  furnish  specially  printed  invitations  to  a  Phonograph 
concert,  etc. ,  etc. ,  would,  I  believe,  make  good  Dealers  of 
hundreds  who  are  now  practically  dead.  Work  of  this  kind  would 
bring  the  Sales  and  Advertising  Departments  closer  together  and 
they  never  can  be  too  close  for  effective  service. 

I  have  written  the  foregoing  simply  for  the  purpose  of 
provoking  discussipn.  No  work  of  this  general  character  can 
be  carried  out  without  a  lot  of  discussion  and  study.  It 
cannot  be  disposed  of  by  saying  "Good,  go  right  ahead.*  It  is 
too  full  of  details  and  complications  to  be  discussed  in  this  wy  . 
If  given  the  necessary  authority  I  will  undertake  the  work,  but 
your  active  Jmterest  in  every  important  detail  will  make  it  more 
certain  of  success.  If  the  Committee. as  a  whole  does  not 

care  to  go  into  the  details,  and  it  probably  cannot  give  it 
sufficient  time,  I  would  suggest  that  Mr.  'Wilson,  Mr.  Pelzer  and 
I  be  appointed  as  a  r subcommittee  to  work  out  details  and  report 
to  the  full  Committee.  The  subcommittee  might  ask  the 
assistance  of  Mr.  Dolbeer  when  considering  National  matten; 

Mr.  Hudson  when  considering  Battery  matters, and  Mr.  Durand  when 
considering  Business  Phonograph  mattery - 

Following  are  some  of  the  subjects  that  should  have 
immediate  consideration: - 


Shall  we  print  a  Grand  Opera  Catalogue  as  a  regular  form,  in 
addition  to  carrying  the  Grand  Opera  titles  in  the  regular  domestic 
Catalogue SO 

If  bo,  and  from  150,000  to  200,000  of  such  catalogues 
trill  he  needed  to  meet  the  trade  requirements,  what  limit  • 
would  you  place  on  the  cost  par  1,000?  Would  §10.00  per 
1,000  he  excessive,  or  a  total  cost  of  §1.500.00  to  §2,000.00? 

We  have  decided  to  run  the  Grand  Opera  titles  in  the  regular 
catalogue  on  different  colored  paper  and  the  cost  of  this  will 
he  from. $1,200.00  to  $1,500.00  a  year  above  the  cost  of  the 
regular  domestic  catalogue. 

If  a  separates  Grand  Opera  Catalogue  is  continued  as  a 
separate  form,  shall  it  include  some  of  the  British,  German, 

French  and  Italian  Grand  Opera  selections  at  50  and  35  cents 
each,  as  well  as  the  Grand  Opera  titles  at  7b/and  §1.00? 

If  so.  how  many,  who  will  select  them  and  whefre  can  this 
selection  be  made? 

In  what  manner  shall  we  furnish  the  trade  with  pictures  of 
Grand  Opera  Artists?  Whom  shall  we  feature?  What  cost  per 
picture?  Shall  we  furnish  the  trade  with  pictures  of  Grand 
Opera  artists  without  restriction,  without  cost  and  without 
knowing  that  the  healers  carry  Grand  Opera  Records?  If  not, 
how  shall  we  decide  who  shall  have  them? 


What  forms  shall  he  printed  to  push  this  machine?  Its 
quality  opens  up  a  new  field  and  makes  high  class  printed 
matter  desirable. 


What  special  printed  matter  shall  we  get  out  to  continue 
to  feature  these  men,  if  they  are  to^eature^at  all?  Shall 
we  print  display  forms  and  at  what  cost  each?  Shall  we  send 
these  out  without  restriction?  If  nolj  how  shall  we  handle 


What  special  printed  matter  shall  we  get  out  to  feature  these? 
Many  of  them  have  been  paid  high  prices  hut  as  yet  we  have  not 
featured  them  to  any  extent, in  special  printed  matter.  If 
they  are  to  he  featured,  what  may  he  spent  in  doing  so  and  how 
shall  we  put  the  matter  in  the  hands  of  the  trade? 


These  include  people  like  Jones,  Spencer,  Porter,  Murray, 
CollinB,  Harlan  and  others  who  have  been  the  hack  hone  of  our 
business.  They  are  becoming  restive  under  the  publicity  given 
the  hewer  people  and  as  a  talent  war  with  the  Victor  Company 
is  evident  they  must  have  consideration. 

How  and  at  what  eixpense  shall  we  feature  them? 




Shall  we  create  such  a  department  securing  a  competent 
man  to  take  charge  of.  it  and  letting  the  manner  of  handling  the 
displays  he  decided  later?  The  expense  of  such  a  department 
might  reach  $pl0,000  a  year  and  "be  a  still  greater  expense  unlesB 
we  adopted  the  Vlctor/J/'bf  making  a  charge  for  the  material  in 
the  display.  A  charge  of  this  kind  keeps  down  the  cost  hut 
greatly  limits  the  benefits  of  the  department. 

The  creation  of  this  department  would  simplify  the  question 
of  special  forms  to  feature  all  classes  of  talent,  for  the  forms 
could  he  planned  as  part  of  the  displays  and  also  used 


These'  should  he  gone  over  one  hy  one  and  a  decision  reached  as 
to  whether  or  not  they  are  as  effective  as  they  can  he  for  the 

The  forms  include  the  several  Record  Catalogues,  the  monthly 
Record  Supplements,  the  Phonogram,  the  Machine  Catalogue,  the 
Phonograph  Monthly,  the  Record  Bulletins,  the  .Order  Blanks  etc. 

Since  the  adoption  of  new  forms  trill  mean  more  expense  and 
any  new  expenditure  must  have  some  relation  to  what  we  are  now 
Bpending,  X  give  ha low  a  summary  of  the  approximate  cost  of  the 
forms  we  are  now  issuing  regularly. 


Domestic  Record  Catalogue 
Machine  Catalogues 
Foreign  Record  Catalogues 
Record  Bulletins 
*  Supplements 
Dealers  Order  Blanks 
Numerical  Catalogues  and  Inserts 
EdiBon  Phonograph  Monthly 
The  Phonogram 

Monthly  Hanger  Announcing  Sale  of  Hew  Records 

Grand  Opera  Reoord  Catalogues  (2  a  year  approx)  _ 


Most  of  this  cost  is  repaid  hy  Jobbers  and  Dealers. 

The  above  does  not  include  forms  like  store  hangers, 
mailing  folders,  etc.,  that  are  issued  irregularly.  This 
kind  of  printed  matter  should  also  have  attention  at  your 
hands  in  the  hope  that  they  may  be  made  more  effective  in 
producing  business  for  Dealers. 














Humber  of  -ftecordg,  Dec.  27,  1909  exclusive  of 
Jobbers  branches  -  855 

Humber  reported  on  by  salesmen  in  past  15  months  -  168 

Humber  not  reported  on  and  about  which  no  statistics  but 
the  business  of  each  can  be  given  -  87 


Talking  Machines  53 

Pianos  or  Muscial  Mdse 
-  or  both  31 

General  Mdse.  27 

Autos  or  Bicyles 

or  both  29 

Books  or  Stationery 

or  both  20 

Sportiqg Goods  16 

Jewelers  13 

Eurniture  9 

Cigars  8 

Confectioners  7 

Barbers  7 


Class  1  (Stock  of  1,000  or  more  Records)  82 

*  2  '  '  500  to  800  ■  20 

■  3  ■  «  300  ■  500  ■  18 

■  4  »  ■  150  ■  500  ■  26 

■  5  '  *  *  150  or  less  "  6 

“  6  Hew  Defi.  ers  7 

■  7  Ho  Report  7 

Slot  Parlors  2^ 

Dry  Goods 
Slot  Parlors 
Photo  Supplies 

SeVrlng  Machines 
Gas  Lamps 
Agent ' 

Hot  Given 








Edison  only  23 
Edison  &  Victor  53 
Edison,  Victor  &  Col.  Disc.  4 
Edison  Victor  &  Zonophone  1 
Edison  &  Zonophone  1 

MUE-IC  M  {  SC. 

The  unreported  Edison  Dealers  are  located  in  small  places 
and  it  is  not  probable  that  the  number  carrying  other  makes  in 
addition  to  Edison  is  any  greater  than  the  percentage  of  other 
makes  in  classes  2  to  or  20  per  cent  (14  carrying  other  makes 
to  72  carrying  Edison  only)  This  conclusion  would  place  the 
exclusive  Edison  Dealers  in  the  State  at  165;  Edison,  Victor  and 
other  makes,  90. 

It  is  also'  doubtful  if  many  of  the  87  unreported  Edison 
Dealers  are  entitled  to  any  better  classification  than  between 
classes  2  to  5.  If,  however,  we  assume  that  10  per  cent  are  in 

class  1,  we  would  find  that  we  have  in  the  state  90  Dad.  era 
carrying  1,000  or  more  Edison  Records  and  165  carrying  800  or 
less.  , 

An  analysis  of  the  Dealers,  in  classes  2  to  5  and  a  study  of  the 
salesmen's  reports,  show  that  these  Dealers  carry  talking  machines 
as  a  side  line  and  fully  60  per  cant  of  them  give  them  only  in- 
sidental  attention. 


_  According  to  the  salesmens'  reports. that  out  of  all  th« 
Dei  ers  in  the  State  carrying  Edison  and/or  goods,  only  8 
td  Victor  goods.  The  others  either  push 
?yr  lins  ahead  of  the  Victor  or  give  us  an  equal  chance. 
Those  who  favor  the  Victor  line  are  the  following:- 

0.  A.  Eeimer, 

Trusting  Piano  Co. , 

Alma  Brown 
R.  Scheuermann 
Hahne  &  Company. 

Newark  Talking  Machine  Co. 
Oliver  Phonograph  Company 
H.  V.  lough, 

Asbury  Park, 





- j. .  J:h?r9  ar®  P1"013*13^  a  few  exclusively  Victor  Dealers  in 

I  £oul5*  ^  th9r9  ar9  t9n*  1110  most  notable 
instance  that  of  Guenther  in  Newark. 

National  Phonograph  Company  Records 
Correspondence,  Foreign  (1910) 

This  folder  contains  correspondence  and  other  documents  relating  to  the 
marketing  and  supply  of  phonographs  and  cylinder  records  in  Europe,  Australia, 
Mexico,  and  elsewhere.  Most  of  the  items  are  letters  to  and  from  Frank  L.  Dyer, 
president  of  NPCo.  Other  correspondents  include  Walter  Stevens,  manager  of 
the  Foreign  Department;  F.  K.  Dolbeer,  manager  of  sales;  and  Thomas  Graf, 
managing  director  of  NPCo,  Ltd.,  and  the  Edison  Gesellschaft.  Among  the  items 
for  1910  are  letters  pertaining  to  business  conditions  in  Europe  and  to  orders 
received  for  phonographs  and  supplies  elsewhere  around  the  world.  Also 
included  are  letters  concerning  the  proposed  consolidation  of  Edison’s  interests 
in  Great  Britain  and  in  the  United  States  under  the  names  "Edison,  Limited"  and 
"Thomas  A.  Edison,  Incorporated";  the  proposed  sale  of  the  Mexican 
phonograph  business  to  George  W.  Cook;  profits  and  expenses  of  Edison’s 
various  European  companies;  and  the  adoption  of  sales  schemes  being  used  in 
the  American  market. 

Approximately  10  percent  of  the  documents  have  been  selected. 


or  THE 


10  Fifth  Avenue. 

Ur.  Prank  L.  Iyer,  President, 

National  Phonograph  Co., 

Orange,  N.  J. 

Bear  Sirs 

Ur.  George  Cook,  of  Messrs.  Hosier,  Bowen  &  Cook,  of  Uexioo  City,  Moxioo, 
called  at  the  office  yesterday  as  per  appointment,  and  the  matter  of  his  taking  over 
our  entire  Mexican  Business  was  very  fully  disoussed. 

Our  proposition  was  to  turn  over  the  entire  Business  in  the  BepuBllo  of 
Uexioo  to  him,  provided  he  would  relieve  us  of  our  entire  stook  which  is  now  held  By 
the  Uexioan  National  Phonograph  Co.,  with  the  possible  exception  of  Battery  material 
and  other  goods  which  he  might  not  Be  in  a  position  to  handle.  We  proposed  to  sell 
him  the  stook  outright,  allowing  him  an  additional  10$  above  his  present  prices,  whioh 
correspond  to  the  Jobbers’  discounts  as  allowed  in  the  States.  Mr.  Cook  promised  to 
give  the  matter  very  oareful  consideration,  But  was  not  inclined  to  Buy  outright  our 
present  stook  held  in  Mexico  City.  He  proposed  to  relieve  us  of  that  stook  provided 
we  would  dispose  of  the  stook  to  him  on  a  consignment  Basis,  a  complete  inventory  to 
Be  taken,  and  at  the  end  of  every  six  months  period  he  would  report  as  to  the  amount 
.  of  goods  disposed  of  from  the  Stook,  and  payment  would  Be  made  for  suoh  goods  as  were 
disposed  of,  at  the  end  of  every  six  months  period.  On  all  subsequent  purchases  he 
would  expeat  us  to  allow  him,  as  above  stated,  a  dlsoount  of  10$  above  the  prloes  he 


F.  I.  Iyer  p  2 

Is  now  paying,  which,  as  stated,  are  our  regular  U.  S.  jobbers'  prices. 

TERMS  In  view  of  conditions  as  existing  in  the  Republic  of  Mexico,  he  also 
stated  that  he  should  be  allowed  a  credit  of  six  months  on  all  purchases  made,  as  ha 
stated  it  requires  at  least  one  month  after  goods  are  shipped  from  New  York  before  they 
are  reoeived,  and  it  is  necessary  for  him. to  give  from  three  to  six  months  oredit,  this 
on  account  of  practically  unlimited  credit  which  European  houses  give  to  merchants  in 

Messrs.  Hosier,  Bowen  &  Cook  are  the  Uexioan  representatives  of  the  National 
Cash  Register  Co,  Who  grants  him  six  months  oredit,  and  he  also  represents  a  number  of 
other  manufacturers,  including  Remington  Typewriters  and  Hosier  Safes,  etc. 

I  enclose  herewith  a  statement  showing  the  oost  of  phonographs  and  records  as 
charged  by  the  factory,  freight  and  duty  to  Mexico  City,  oost  to  Messrs  Mosler,  Bowen  & 
Cook  on  a  basis  of  goods  purchased  at  American  list  prices  less  jobbers'  discounts,  and 
oost  to  Jobbers  in  Mexioo  on  the  basis  of  Mexican  list  prices,  which  lnolude  duty  and 
freight,  less  Mexican  discounts,  together  with  oost  to  dealers.  The  oost  of  maohines 
and^reoords  to  the  Foreign  Department  as  shown  on  this  statement  is  based  on  the  prices 
prevailing  prior  to  January  1st,  as  Mr.  Redfearn  has  not  yet  completed  his  new  sohedule 
of  prices  Which  apply  after  January  1st.  Messrs.  Mosler,  Bowen  &  Cook  took  up  the 
Bale  of  our  apparatus  a  year  ago,  together  with  Viotor  and  Columbia  lines.  Their  busi¬ 
ness  so  far  has  amounted  approximately  to  $8000.00  Cold. 

Provided  our  Hexioan  business  were  turned  over  to  Messrs.  Mosler,  Bowen  &  Cook, 
after  allowing  them  the  additional  10$  diaoount,  we  would  still  net  a  good  margin  of 

Mr.  Cook  was  not  inclined  to  bind  himself  to  purchase  any  particular  amount, 
but  assured  me  that  he  would  use  every  endeavor  to  do  a  large  business .-  If  this  arrange¬ 
ment  is  made,  he  will  conduot  the  phonograph  business  entirely  separate  -from  his  present 


F.  L.  Dyer 

P  3 

business,  employ  a  manager  and  speoial  salesmen  to  canvass  the  Republic  thoroughly,  and 
take  up  the  entire  business  in  a  large  way.  If  our  entire  business  ware  turned  over 
to  Messrs.  Hosier,  Bowen  &  Cook,  I  have  no  doubt,  with  the  facilities  they  have  at  hand 
for  doing  business,  their  purchases  would  amount  to  approximately  $60,000.00  per  year. 

If  they  gave  us  that  amount  of  business,  we  should  net  at  least  $10,000.00  per  year. 

I  am  inclined  to  think  that  if  the  above  arrangement  is  made  with  Hr.  Oook, 
we  oould  induce  him  to  relieve  us  of  our  office  building  in  Mexico  City,  and  I  also  be¬ 
lieve  that  he  would  relieve  us  of  Hr.  Nesbitt.  Our  lease  for  the  Mexican  office  ex¬ 
pires  December  1st,  1910.  The  rent  for  the  building  is  $260.00  Gold  per  month,  and 
we  receive  $60.00  Gold  per  month  on  account  of  subletting  a  small  part  of  the  building, 
making  our  net  rental  $200.00  Gold  per  month. 

I  believe  you  know  that  Mr.  Cook  is  praotioally  the  sole  owner  of  the  business 
conducted  by  Messrs.  Hosier,  Bowen  &  Cook,  and  he  has  one  of  the  largest  and  best  equipped 
stores  in  Mexioo  City.  They  handle  the  better  class  of  office  fixtures,  furniture, 
household  goods,  etc,  and  carry  an  enormous  stock.  Mr.  Cook  is  rated  in  Mexioo  City 
as  a  millionaire  and  he  stands  very  high  in  offioial  and  business  olroles.  In  addition 
to  his  business,  Mr.  Cook  owns  the  Hotel  Morelas  in  Cuemavaoa,  also  the  San  Angel  Inn 
(a  valuable  property),  Just  outside1 of  Mexioo  City.  I  also  understand  that  he  has 
largo  realestate  holdings  in  Mexioo  City.  He  has  large  influence  in  offioial  cirolee 
and  is  reported  as  being  very  olose  to  President  Diaz,  and  I  might  state  that  it  was 
through  Mr.  Cook's  influence  that  we  recently  obtained  a  phonograph  reoord  made  by 
President  Diaz. 

There  1b  no  doubt,  if  we  ever  expect  to  turn  over  our  business  in  Ilexioo  to 
any  individual  or  corporation,  that  there  is  no  one  in  the'  Republic  who  oould  represent 
us  in  a  mope  dignified  manner. 

If  there  la  any  further  particulars  you  desire  regarding  this  matter,  if  you 


v.'ii'  osdon  Junotion, 

.  London,  'nglnd. 

j.C’iro  02  the  Gt'n  nil  •  wac  duly  roooivod  cn  tho 
ti oo  ..  02  tuo  possi  i.-i.Lity  o;:  cur  b-.iwg-  able  to  naho  direct  chip-  . 
•' “c  --c’  in  nglend,  and  J  note  that  you  regard  this 
ac  „  ~racti cully  l  ^  "L.c.  :  h  vc  reior-cd  the  n.ttcr  to 

1 :on  :'.v.  i:  vc-  hi.-;  advice  thr.recn,  .  nd  I  find  that  ho 

ocvooc  with  you.  't  the  cane,  fr;o,  t.-o  must  di  t  .j.-.-  t  if 

t.ioro  ,n  ;  ;iy  v.vy  by  .vans  of  v.-hieh  o::  enso  in  tho  conduct  of  our 
foroign  businocr.-  can  ho  eliminated  it  v;ill.  he  very  eosirablo. 
ini,,  is  narticul  riy  true  in  connection  with  tho  "business  dono  in 
nendon  boemtoo  it  does  not  ifchc.  .  vory  coed  comp-, risen  in  regard, 
to  tno  businosn  dono  in  Australia,  for  the  roaoon  that  your  soiling 
ormonoos  and  advertising-  cento  arc  noooosarily  higher  booause  of 
tho.  boon  congd'rfi^"^-021  j|:c  nbieh  you  arc  subjected.  Mr.  Edison, 
however.,  dpos  not  see  these  suostions  orcnotly  as  wo  do  end 
it  is  difficult  to  always  r.r.hc  it  clear  to  him  why  tho  pore  outage 
of  onponoc  to  ooloo  should  he  highor  in  onb  part  of  the  wortdL 
than  in  another.  later  on  I  will  write  you  regarding  this 


a/ D/io. 

Ehonas  Graf. 


matter .  'but  rt  tho  pros  oat  tine  I  would  like  Tory  much  If 
poo  :iblo  to  have  coraothing  Gone  alone  tho  lino  of  i.Sr.  Edison's 
sug  ostion-  If  it  would  be  possible  f  r  uo  to  nakc  shipments  of 
scvnplo  records  to  you  earlier  then  r:c  Co  at  prosesb  Go  you  think 
it  would  bo  possible'  to  rapSip  on  ri-ra-ngonont  with  tho  footoro 
by  which  aft  or  hearing  the  samples  they  could  place  orders  with  you 
to  bo  filled  directly  iron  Cranio?  I  rooogniso,  of  courso,  that, 
•by,  issuing  the  samples  sc  .for  in  advanoo  of  the 'actual  publication 
of  tho  record:;  •  o  loso  to  a  oortcin  ertent  in  tho  oaoo  of  selec¬ 
tions  of  noro  or  lose  popular  interest-  I  sec  no  reason,  how¬ 
ever,  v;hy  ro  should  net  grailm  liy  inpr  v  on  the  dr  too  of  ship¬ 

ment  of  rooordc.  to  you  so  that  evrtv.  .lly  wo  might  bo  f  r  enough 
ah--.c!  to  on  bio  ski  -rents  to  bo  race  iron  Orange . 

""indly  o or aider  th.i.-  -•  i  tor  ;;  in,  '  if  yen  bolievo 
f  |  it  wcuV  bo  possible. to  fill  orders  from  Orange  sc  as  to 
eliminate  tc  eert->in  orient  the  err- --nr.  o  of  storing  cud  ro- 
ship-'tr;;  records  in  I.ondon,  lot  r--  Imow  .-.bout  her  f:r  in  :raco 
of  the  a.ctu  1  phi"  .cat  of  the  records  you  should  roeeivc  cam-ilos,  ’ 
and  I  rill  see  if  it  v.-jll  bo  possible  to  moot  yc-ur  views  in  this 
particular.  I  really  believe  that'  if  this  suggestion  could  bo- 
effectively  c;.  tried  out  a  very  considerable  saving'  could  bo 
effected,  amounting  to  Vnitc  a  g^nidcrable  percent  of  tho  net 

Yours  very  truly,  - 


-  President. 

.a  Poll.  9,  1910. 

Personal  raid  Confidontlr-1 

I3ionas  Graf,  Esq. , 

IVilloodon  Junction, 

London,  "ncl.-nd.  . 

Gy  do:  r  Mr.  Gref: 

Shortly  hoforo  :ir.  Edison  loft  for  Florida  tills 
yoar  be  ached  no  to  brine  «p  r:ith  'Mo  the  question  of  tho  cccponco 
■  nd  profits  of  oux*  vari one  foroien  offices-  Chic  I  did,, hut 
the  ehOT&nG  v;  s  .not  particularly  Good,  raid -I  an  uritine  to.  you  riot 
in  the  nay  of  a •  int  't  all  hut  in  ordor  to  discuss  tho  wit-' 
tor  franl&y  -Tilth  you- and  to  Got  your  ideas  as  to  .tho  situation- 
I  realise,  of  course,  from  v;hat  you  told  no  raid  f roigi  vrliat . I 
liavc  seen  nysolf,  that  tlio  ocapotition  to  vrhioh  you  are  subjected 
is  ontror.oly  Iroori  and  tfot  in  all' fairness  a  comparison  cannot 
properly  ho'nado  hotuoon  tho  ronults  secured  by  you  in  Europe- 
end  tlioo©  uliicli  v;o  iro  able  to  obtain  in  tliip  country.  Iho 
fijjnroo- Which  I  have,  chow  th-'.t  in  tli©  London  offico  tho  poroontaco 
of  oapcnocsto  1907  was  18.1$,  in  1908  SB. 3$,  and  for 
tho  first  nine  months  of '1909  31.0 jS. 

In  Borliri  tlio  porccntacc  of  oxponco  to  oalos;in  1907-  _  . 
was  38.1/j,  in  1908  44.3JJ  nd  for  tlio  first  nino  iaont3is  of  1909 
44.  G&.  •  .  _  ’  ,  ^ 

In  Baris  tho  poroontaco  of  oxronoo  to  oalos  in  1907 

waa  84$,  in  1908  58.7$  and 'tho  first  nlno  months  of.  1909 

It  good  Without  sayinG  that  tlio  ohoping  mado  by  tho  office  ioabnolutoly  impoBsiblc,  and  I  have  not  regrettod 
my  determination  to  curtail  or.ponpo  hy  closing  tho  office  in  tho 
Ruo  do  Paradis.  '  - 

Pile  showing  in  London,  howover,  is  dioturhinG  hooauoc 
it  shows  a  Gradually  increasing  poi-ccntago  of  onponoo  to  salos, 
and  tho  sane  io  also  t ruo  of  Berlin.  ’  ' 

For  your  information  I  night  say  thot  in  Australia 
the  poroontsgo  of  osponoo  to  soloa  for  tho  first  nine  months  of 
1909  is  only  11$,  and  at  no  time  lias  it  boon  higher  then  1S$. 

Of  oourso  in  Australia  thorp  io  very  little  competition  and  tho  . - 
bsponno  for  advertising’  purposes  is  relatively  low.  Chore.  arc 
Dome  orponoos,  howovor,  in  connection  with  tho  London  hupinoos 
which  I  third:  should  roooivo  vory  oaroful  consideration  hy  you. 

For  inst  nco,  in  1907  the  offioo  salaries  amounted  to  014,959.88, 
in  1908,  O’lG , 549 . 80 ,  and  for  tho  first  nino  months  of  1909, 
015,589.52,  so  that  at  tho  same  r  to  .tho~o  salaries  for  tho  past 
yoar  would  he  in  tho  ncighboirhood  of  (17, 00'  . OO.  JMa  is  a 
vory  oonsidorahlc  inoroaco  in  office  oalsrioo,  notwithstanding  tho 
faot  that  the  sales  havo  fallen  off  almost  50$. 

Tho  itom  of  warohouso  wogod ,  is  also  difficult  to 
understand  bocauno  in  1907  this  ouponco  amount od  to  §8,276.00, 

•with  a  total  husinoss  of  §574,299.92,  whilo  for  tho  first  nino 
months  of  1909  tho so  ouponsoo  amount  to  §7,404-16,  which  at 
tho  sane  rate  would  oqual  for  tho  ontiro  yoar  ovor  §9,000.00  with 
•  a  total  husinocs  of  not  moro  than  §300,000.00  or  in  tho  neighbor¬ 
hood  thoreof.  It  sOoms  to  mo  that. this  particular' itom  of 

.  3.  2/9/10.  NATIONAL  PHONOGRAPH  COMPANY  UlOEiaS  GVO.f  • 

a-cp  ciioo  ought  to  "boar  a  one  dofinito  rolation  to  tho  sales . 

Ehoro  aro  othor  itoma  of  orponoo  that  'do  not  coon  to 
hoar  tho  propor  ratio  to  salon ,  for  instanoo,  tho  quostion  of 
saloamon.  .  In  1907  tho  coot  salesman  too  06,654.00,  nd. 
for  tho 'first  nino  nonths  of  1909  this  cost,  too  05,972.00, 
which  ‘  at  tho  some  rato  for  tho  ontiro  yoar  would  amount- to 
alnost  §7,500.00.  In  other  r/ordo;  with  tho  sales  falling  off  ' 
almost  BOfj,  the  ooot  of  oolosnon  considerably  increased. 

I  rcaliso,  of  couroo  that  it  is  impossible  to  always  . 
maintain  the  same  ratio  of  asnoaso . to  salos,  hut  it  is  very 
import -nt. that  this  ratio  should  ho  kept  as  nearly  constant’  as 
possible.  •  ITo  douht  i  ll  those  clononto  of  oriponoo  havo  boon  gone 
into  vory  a,  rofully  by  you  hocauso  I  know.  your  ideas  ore  alone  tho 
right  linos  and' that  your  p'rincip:!  Intoroot  is  in  tho  way  of 
economy.  I  bring  tho  matter  to  your  attention,  howovor,  in  . 
ordor  th  t  you  may  go  into  this  quostion  in  dotr.ll  and  lot  no  know 
3u:t  what  your  idoao  as  to  tho  possibility 'oithor  of  roduoing'  tlio  . 
oseponpe  to  a  further  ontont-or  as  to  your  hope  in  tho  way  of 
increasing  .tho  salos-  I  think  I  an  tho  only  one  . hero  who  has  a..,'; 
clear _ appreciation  of  tho  difficulties  under-  which • you  labor 
and  I  an  in  .entire  -sympathy,  with  you  ana  will  do  all  'that  I  con 
to  help  you  out  in  tho  <y/ay  of  now  linos  .which  ought  to  on  bio 
you  to  increase  your  bucinoco.  At  tho  same  tino  I  would  liho  to 
have  from  you  a  complete  stc.tonont  of  your  ov.n  opinion  regarding 
tho  situation  and  tho  way  you  would  oixplcin  tho  apparont  inoroaso 
in  or-rnonno  with  a  falling  off  in  tho  salos,  in  ordor  that  I  may 
discuss  tho  quostion  fully  with  Hr.  Edison  when  ho  roturns.  Ho 
dcos  not  oxpoot  to  return  to  Quango  until  April,  so  that  thoro 
will  be  plonty  of  time  for  you  to  givo  the  -ranttor  vory  oaroful 



Thonaa  Graf. 

oonoidcration  In  ordor  that  you  any  v;rlto  no  in  detail. 

Yours  vory  truly, 

PXil)/ 1  \1\" 


Mr.  Frank  L.  Dyer,  President, 

National  Phonograph  Oo., 

Orange,  New  Jersey, 

Dear  Mr.  Dyer:- 

Your  letter  of  Jan.  19th  has  been  held  without  earlier 
reply,  owing  to  the  fact  that  after  my  return,  I  was  completely 
swamped  with  urgent  business  matters,  and  to  the  further  fact  that 
I  wished  to  discuss  with  my  phonograph  department  the  subjeot  matter 
of  your  letter. 

I  would  request  you  to  authorize  MT.  Nisbett  to  show  me 
suoh  data  in  regard  to  the  amount  of  his  saleB,  the  accounts  with 
his  dealers,  the  expenses  of  his  establishment,  and  suoh  other  mat¬ 
ters  of  a  like  nature  as  are  necessary  for  me  to  have  in  order  to 
appreciate  the  present  condition  of  your  business  in  Mexico.  I 
understand  that  you  have  a  statement  to  the  1st  of  January  made  up 
by  the  Price-Waterhouse  fy  0o , ,  chartered  accountants,  and  if  there 
is  no  inconvenience  in  sending  this  to  me,  I  should  be  glad  to  see 
a  copy  of  it. 

In  this  connection,  permit  me  to  say  that  I  do  not  think 
that  I  could  use  Mr.  Nisbett  here,  as  I  believe  that  a  knowledge  of 
the  business  conditions  of  the  country  is  even  more  essential  than 

■Mr.  P.  L.  D.  -2- 

a  Knowledge  of  the  phonograph  business ,  in  the  conduct  of  our 
department.  The  Knowledge  of  the  phonograph  business  can  be 
acquired  probably  more  easily  than  can  the  Knowledge  of  the  lan¬ 
guage,  the  people,  and  the  business  conditions  of  the  oountry. 

I  beg  to  maKe  the  following  comments  on  the  proposition 
contained  in  your  letter  under  reply: 

(1)  We  would  be  willing  to  take  on  your  exclusive  representation 
in  the  Mexican  Republic  for  the  sale  of  phonographs  and  records,  pri¬ 
mary  batteries  and  numbering  machines.  The  moving  picture  machines 
and  films  we  could  not  handle  to  advantage. 

(2)  Your  statement  of  the  disposition  to  be  made  of  your  present 

stocK  in  Mexico,  and ^as  to  the  method  of  our  accounting  to  you  for. 
the  same,  is  satisfactory.  We  understand  that  when  you  say  that 
goods  are  to  be  consigned  to  us  at  prices  10$  below  those  we  now 
reoeive,  you  have  in  mind  your  American  list  price  as  a  basis. 

If  we  are  now  receiving  50$  discount  from  the  American  list,  we 
understand  you  to  mean  that  we  shall  reoeive  60$  from  your  Amerioan 
list  on  this  consignment  Btooh. 

(3)  As  to  subsequent  purchases,  we  likewise  understand  that  the 
additional  discount  of  10$  over  our  present  prices  is  based  upon  the 
Amerioan  list,  and  if  we  are  now  receiving  50$  discount  from  that 
list,  we  shall  on  suoh  subsequent  purchases  receive  60$  discount. 

If  the  additional  10$  disoount  is  intended  to  be  limited  to  the  net 
price  we  are  now  paying,  the  additional  disoount  offered  us  would  be 
too  trifling  to  warrant  us  in  undertaking  the  general  agenoy. 

As  to  credit  on  these  subsequent  purchases,  we  naturally 
would  prefer  six  months  to^three ,  and  hope  you  can  see  it  to  your 
interest  to  make  us  such  an  arrangement. 

Mr.  F.  D.  -£- 

(^)  When  in  New  York,  I  discussed  with  you  the  proposition  of 
our  having  the  right  to  return  to  you  suoh  records  as  we  might  pur¬ 
chase  in  the  future,  in  oase  they  should  prove  unsalable.  You 
indicated  that  such  an  arrangement  could  be  made ,  but  in  your  letter 
under  reply  you  have  forgotten  to  make  any  observations  on  this 
subject .  Kindly  inform  me  as  to  what  arrangement  you:  would  be  dis¬ 
posed  to  make.  I  consider  this  extremely  important,  as  wheraobusi- 
ness  is  done  on  suoh  a  fine  margin,  it  is  very  possible  to  lose  the 
entire  profit  in  heaping  up  unsalable  records. 

(5)  You  speak  of  the  Jobbers  in  El  Paso  and  Los  Angeles  who 
are  doing  some  business  in  Mexico.  We  assume  that  they  are  doing 
business  in  Mexico  at  the  prices  fixed  by  you  for  Mexioo.  As  we 
will  be  the  ones  who  foment  the  Mexican  business  through  our  travel¬ 
lers,  our  advertising,  and  our  propoganda  work,  thus  creating  a  mar- 
Ket  _^these  jobbers,  we  believe  that  we  should  be  credited  by  you 
with  a  difference  between  the  price  paid  by  these  Jobbers  and  the 
price  you  charge  us,  on  all  Mexican  goods  which  are  handled  by  these 
'Jobbers.  . 

(6)  m  regard  to  advertising,  you  will  appreciate  the  fact  that 
your  American  advertising  in  magazines  and  newspapers  is  of  no  value 
to  us  in  Mexioo.  We  shall  be  compelled  to  expend  large  Bums  of  money 
in  advertising,  as  advertising  is  the  very  life  of  this  business  in 
Mexioo.  We  would  suggest  that  you  give  us  an  advertising  allowance, 
and  we  will  agree  to  put  up  an  equal  sum,  and  the  total  shall  be 
dedicated  exclusively  to  advertising  the  Edison  goods  from  the 

stand  point  of  the  Edisjon  representation,  and  not  from  the  retail 
stand  point. 

(7)  We  are  now  retailing  the  Edison,  Victor,  and  Columbia 

Mr.  F .  D.  -1^- 

phonographs  and  discs.  We  understand  that  our  Edison.',  representa¬ 
tion  would  not  in  any  way  deprive  us  of  our  rights  to  continue  re¬ 
tailing  all  these  lines. 

(.8)  An  examination  of  your  Mexican  price-list  shows  us  that  on 
the  "Home"  and  "Triumph"  machines,  the  margin  between  your  Mexican 
dealers'  price  and  the  price  you  are  now  charging  us,  1b  very  npi«n 
indeed.  It  would  not  cover  the  expenses  of  doing  business,  even 
with  the  10$  additional  which  you  would  give  us  as  your  representa¬ 
tives.  Kindly  examine  these  prices,  and  see  if  the  price  to  us  on 
these  machines  could  not  be  Improved. 

(9)  In  ease  we  ehould  conclude  our  proposed  arrangement,  we 
would  be  willing  to  tahe  over  your  lease  on  your  Mexican  office  and 
warerooms  up  to  Deo.  1st,  1910. 

We  are  negotiating  for  the  contruction  of  a  four  story 
building  which  we  trust  we  may  be  able  to  conclude,  and  which  we 
hope  to  dedicate  exclusively  to  our  piano  and  phonograph  depart¬ 
ments,  and  would  hope  that  this  might  be  finished  about  that  time. 

Again  referring  to  Mr.  Nisbett,  I  would  say  that  he  im¬ 
presses  meaas  an  excellent  phonograph  man,  and  I  really  believe 
that  he  can  be  of  greater  value  to  you  in  the  American  territory 
than  in  the  Mexican  territory. 

Hoping  to  hear  from  you  at  your  convenience,  I  beg  to 
remain ,  . 

Very  truly  yours, 

G.  Croydon  Harks,  'aq. , 

C®  &  8$5  Lino o In 1  a  Inn  fields , 

London,  f.  C.,  England. 

Door  Mr.  Harks: 

Shoro  havo  Loon  porno  developments  horo  rocontly 
that  load  mo  to  boliovo  that  possibly  an  offort  trill  ho  made  to 
oncploit  tho  Poulson  golographono  in  England  and  that  possibly 
in  a oino  nay  ,:r.  Edison's  nnmo  will  be  used.  Eho  throo  non  who 
aro  intorostod  in  tho  mr.ttor  aro  "Col."  John  ...  ghompson,  -who 
■  was  at  ono  tine  a  sort  of  finanoial  baokor  for  glioma  a.  Ediaon, 
Jr-,  end  got  that  young  man  into  all  sorts  of  difficult ios,  from 
whioli  I  on  glad  to  say  ho  has  now  boon  oztrioatod;  William  Holsor, 
a  brother-in-law  of  Mr.  Edison,  whoso  character  is  of  the  very 
shadiest  dosoription  and  with  whom  Hr.  Edison  has  had  nothing  to 
do  for  a  good  many  yoars;  and  "Col."  p.  w.  Jacobs,  who  at  ono 
time  was  connected  with  tho  so-called  "Ediaon  Polyform"  but  who 
in  rooont  yoars  seems  to  hvo  gono  very  muoh  to  tho  bad. 

Speaking  plainly  and  confidentially  to  you,  r 11  of  those 
mon  in  my  opinion  aro  of  vory  bad  oharaotor.  They  havo  triod  to 
got  money  outo'f  mo  in  various  ways  and  thoy  liavo  ondaavorod  to 
got  mo  to  givo  thorn  letters  of  rooommondation  to  pooplo  in  England, 
which,  of  oourso,  I  havo  rofusod  to  do. 

G.  Croydon  Marks. 



Should  any  of  those  cion  appoar  in  London  or  clsowhoro 
and  make  any  protontions  towards  having  Up.  Edison's  ondoroomont 
or  support  or  toing  in  any  v/ay  friondly  with  him,  ploaso  tako  the 
nooossary  stops  to  promptly  oontradiot  any  such  st at orient s. 
ily  personal  viow  is  that  any  financial  aoliorao  they  may  try  to 
float  in  London  must  nooossarily  to  of  a  cuostionatlo  charaotor. 

Of  oouroo  you  will  oonsidor  this  letter  ouito  con¬ 

Yours  vory  truly, 


Gonoral  Counsel. 



Unrcli  10,  1910. 

George  Cool-:,  Use., 

Moslor*  Bov/on  .1  Cook,  . 

P.  0.  Box  G58, 

City  of  Hoxioo,  Uoxico. 

Boar  Ur.  Cook: 

linking  on  extended  reply  to  your  favor  of  Febru¬ 
ary  84-tli,  ana  in  accordance  with  your  request,  I  licnd  you  here¬ 
with  copy  of  the  Profit  end  loos  sheet  of  the  Mexican  national 
Phonograph  Company  prepared  by  Messrs.  Prioe,  V/aterhouse  h  Co. 
for  tho  two  years  ending  December  31,  1909,  which,  of  course, 

1  shall  ask  you  to  consider  absolutely  confidential.  flic 
figures  are  in  Mexican  currency. 

You  will  note  that  there  was  a  loss  of  §$.,'298.16  for 
tho  year  a$Q^|nd  of  082,242,07  for  the  year  1909.  Sho  sales 
for  both  years  are  substantially  tho  same,  but  the  added  ex¬ 
penses  for  1909  are  more  than  accounted  for  by  tho  substantial 
increase  of  the  advertising  appropriation.  The  extra  cost  of 
goods  in  1909  was  due  largely  to  tho  fact  that  in  the  pre¬ 
vious  year  a  rebato  was  allowed  for  returned  records  and  that 
for  about  six  months  of  the  provious  year  we  wero  paying  the 
freight  to  Mexico. 

If  thero  are  any  additional  figures  you  would  like  to 
have  I  will  ho  glad  to  furnish  them,  although  my  own  idea  is 


Go  or  go  Cook.  (2)  s/io/io. 

that  in  submitting  tho  proposition  to  you,'  v/lmt  has  boon  done 
in  tho  past  should  not  out  much  of  a  figure.  y/o  huvo  certainly 
oponod  up  tho  territory,  established  dealers,  made  the  goods 
popular  to  a  certain  extent  and  lost  money,  but  I  bollovo  you 
have  just  the  right  kind  of  talents  and  opportunities  to  tako 
over  the  proposition  as  it  now  stands  and  make  it  pay.  I  be- 
liovc  in  ti  c  you  could  very  materially  increase  tho  salos,  and 
I  cm  euro,  with  your  largo  organisation,  that  the  percentage 
of  oxpenso  would  bo  very  much  roduood. 

I  note  what  you  say  regarding  Mr.  Wisbett,  and  if  you 
cannot  uso  him  in  Moxico  I  may  bo  ablo  to  find  a  place  for-  him 

I  do  not  understand  from  your  letter  that  you  definitely 
.accept  ray  proposition  or  that  you  melee  a  counter  proposition 
which.  I  can  accept,  bccauoo  1  take  it  for  granted  that  you  wish 
to  look  more  closoly  into  tho  actual  situation. 

(1)  Assuming  that  you  have  satisfied  yoursolf  as  to 
tho  general  hopefulness  of  the.  proposition,  1  note  that  you  arc 
prepared  to  take  on  the  exclusive  representation  in  Mexico  for 
tho  sale  of  Phonographs,  Records,  Primary  Batteries  and  number¬ 
ing  Machines,  but  that  you  cannot  handle  Moving  Picturo  Machines 
and  films  to  advantage.  I  would  like  to  have  a  dofinito  and 
final  acceptance  by  you  on  this  point  as  soon  as  possible. 

(2)  Regarding  the  pricos  to  bo  ehargod  you  for  goods 
consigned  from  our  present  stock  in  Mexico,  we  are  prepared 
in  the  case  of  machines  (Phonographs,  Primary  Bnttorios  and 
numbering  Machines)  to  make  an  additional  10#  discount  from 
tho  most  favorable  prices  rocoivod  by  our  jobbers  in  tho  United 

Statos.  In  other  words,  in  the  case  of  Phonographs ,  for  ex¬ 
ample,  tho  prooent  jobbers'  discount  is  50#  foxcopt  on  the  Oom 
rnaohino,  on  which  tho  discount  is  40#) ;  wo  would  allow  you  60$ 
discount  from  list  (in  tho  ease  of  the  -  Oom  machine  50#  discount) 
i’.o.b.  IIow  York.  In  tho  ease  of  phonograph  records  wo  cannot 
make  an  equivalent  reduction,  hooauco  to  do  so  would  mean  an 
actual  loos.  At  the  pro sent  time  our  standard  35-oent  records 
arc  cold  to  jobbers  for  10  cents  los's  5$  for  broakago,  amount¬ 
ing  to  15.2  cents  net.  Our  50-cont  .Amborol  rooords  aro  sold 
to  jobbors  for  20  conts  loss  5#  for  breakage,  equaling  19  cents 
not.  So  allow/  you  an  additional  10#  would  mean  a  price  of 
11.7  cents  on  standard  rooords  and  14  cents  on  Amborol  records, 
which  are  below/  our  actual  ooot  of  production  for  Amorican 
records.  The  cost  of  our  .Mexican  records  is  actually  con¬ 
siderably  higher,  because,  owing  to  tho  comparitivoly  limited 
oalos,  tho  rolativo  oxponso  of  making  the  maotors  and  paying 
talent,  etc.,  is  much  higher.  For  instance,  the  last  time, 
wo  sent  our  recording  mon  to  Mexico  to  make  up  a  list  of  Mexican 
records  tho  cost  wao  upwards  of  £10,000  u.  3.  currency,  which 
has  to  bo  distributed  over  a  very  groat  number  of  records  to 
bring  tho  cost  for  this  itom  .down  to  tho  figures’  of  our  Unitod 
Statos  records.  V/o  would  therefore  have  to  make  you- a  special  '■ 
flat  price  for  records,  and  the  best  we  oould  do  would  be  13 
cents  for  standard  rooords  and  15  oonts  for  Amberol  rooords. 
hator  on,  if  the  salos  warrentod,  thoso  prices  might  be  olight- 
ly  roducod;  and.  in  tho  case  of  records  that  wo  may  put  out  in 
the  future  at  a  higher  price  wo  will  bo  willing  to  make  equiv¬ 
alent  concessions. 


Gborso  cook.  (40  s/lO/lO. 

Ag  I  intimate d  to  you  in  confidence ,  wo  anticipate 
putting  out  apodal  linos  of  phonographs  in  the  near  future 
which  wo  boliove  will  be  very  attractive  to  the  Mexican  trade. 

(3)  She  prices  abovo  roferrod  to  apply  to  subsequent 
purchases.  I  do  not  see  how  I  can  consistently  consent  to 
six  months  credit,  because  goods  horo  arc  sold  at  30  days,  C',j 
dlsoount  for  cash.  I  will,  howover,  make  a  concession  of  an 
additional  month  and  give  you  four  months  orodit,  which  I  hope 
you  will  accopt  as  a  compromise. 

(4)  It  would  not  bo  possible  to  make  an  arrangement  for 
Mexico  under  which  you  couia  return  for  credit  any  records  which 
prove  unsalable,  but  tlio  same  arrangement  could  bo  adopted  in 
Mexico  that  we  have  found  has  worked  satisfactorily  in  tho 
States.  In  this  country  we  ondoavor  to  keep  our  catalogue 
limited  to  about  1500  selections,  and  at  stated  periods,  onco 

or  twice  a  year,  wo  remove  from  the  catalogue  as  many  numbers 
as  havo  been  added  to  it,  tho  cut-out  numbers  being  records 
which  have  had  the  smallest  sales.  i7c  then  pormit  jobbers  and 
dealers  to  return  to  us  all  cut-out  records  and  givo  them  full 
credit  for  now  records.  In  this  way  thoir  stooks  aro  always 
kept  up  to  date  and  slow-soiling  records  are  removed  from  the 
market.  Shis  could,  be  done  in  Mexico,  tho  list  being  kept  at 
a  proper  number  and  as  many  rocords  being  cut  out  oach  year  as 
may  be  added  to  the  list,  with  tho  privilege'  of  return  for  cred¬ 
it  in  ordoring  now  rocords.  In  this  oonncction  you  of  course 
would  lose  tho  amount  of  duty  paid  on  cut-out  records.  In  tho 
Statos  wo  insist  upon  the  return  to  us  of  all  cut-out  records ,? 
before  credit  is  givon,  end  these  cut-outs  aro  then  dostroyod. 


but  it  aught  bo  possible  in  Mexico,  without  materially  conflict- 
inc,-  with  our  ono-prioo  system,  to  moke  an  arrangement  with  you 
under  which  wo  gave  you  credit  of  one  now  rocord  for  ouch. two 
cut-out  rooordo  in  your  stock  end  then  o.llowod  you  to  ooll  the 
cut-outs  at  a  special  prioo. 

(5)  The  roasonublonoss  of  your  proposition  on  this 
point  does  not  impress  mo  as  convincing.'  If  our  Los  Angelos 
and  El  Paso  jobbors  did  no  business  in  IJexioo  at  the  prosont 
time  and  us  a  result  of  your  advertising  succoedod  in  develop¬ 
ing  local  fields'  it  might  be  ouito  proper  that  v/o  should  crodit 
'  you  with  the  difference  between  the  prico  paid  by  thorn  and  the 
price  wo  ohargo  you.  Those  Jobbers  arc  now  doing  somo  business 
in  Mexico,  and  as  to  this  thoro  should  not  be  any  allowance . 

It  would  bo  difficult  to  tell  how  much  business  they  dorivo 
from  your  advertising  and  how  much  from  their  own  efforts,  but, 
as  I  have  written  you,  I  am  ready  to  out  off  these  Jobbers  from 
enoering  tlio  Mexican  territory  as  soon  as  you  oonvinco  mo  tliat 
you  arc  satisfactorily  covering  the  field. 

(6)  I  will  be  willing  to  co-oporato  with  you  on  the 
subject  of  advertising,  at  least  for  a  little  timo  until  wo  soe 
how  tno  scheme  works.  How  much  wovild  you  propose  to  oxnond 

in  this  way? 

(7)  The  exclusive  soiling  arrangement  with  us  will  not 
in  any  way  deprive  you  of  your  rights  to  retail  Victor  and 
Columbia  talking  machines  and  discs. 

(8)  I  cannot  make  any  further  concession  on  Home  or 
Triumph  machinos ,  but,  as  I  figure  it,  with  the  10#  additional 
discount  allowod  you  your  Jobbing  profit  oven  on  thoso  machines 

Coorgo  Cook. 




will  run  betwoon  SOJa  unci  40JS,  while  the  rotuil  profit  ia  a 
very  handsome  ono. 

(0)  X  note,  ahoulcl  you  conclude  tho  proposed  arrange¬ 
ment  ,  you  Would  bo  willing  to  take  over  our  leaeo  on  tho  Moxi- 
cen  office  unc!  ware-rooms  up  to  December  1,  1910. 

I  think  tho  above  includes  all  tho  points  called  for 
by  your  letter  and  I  liopo  to  hove  a  favorable  reply  from  you 
in  order  that  tho  arrangement  can  be  put  into  of  foot  as  soon  as 

Yours  vory  truly, 





:.toi’ch  nij  me. 

—  and  Confidential 

Hiorr.c  Gr; "an., 

O/o  national  .'1ioaoGva:.'Ji  Co. ,  ~,td. , 

Y.’il?.ooi  on  Junction,  London. 

:.1.V  door  Jr.  Givi: 

P.O-orrinG  to  your  coniauontir.l  letter  oi  Dcconoor 
17t3a,  tlio  aovorr.2  iomo  oi’  dial;:  machines  ,-;jd  tho  c3icap  cylinder 
moirino  liavo  boon  roceivod,  nd  ro  are  all  rioro  f3ir.ii  surprised' 
t3mt  f  .oao  naohinos  can  Tie  cold  at  auol-  lov,  prices.  in  a  laeaauro 
I  havo  appreciated  tho  difficulties  v/liich  havo.  confronted  you  in 
<  t"r'°  riu&  0:C  cotnotit:  on  but  I  think  tiioso  sample  naohinos  for  tho  ' 

.  first  tino  -havo  demonstrated  to  our  pooplo  horo  tlio  actual  oituo- 
tion  in  Europe..  .of  course  tho c  arc  flimsy 'and  trappy  and 
indicate- -cheap  raatorialo  and  lew-prieod labor,  and  it  would  nevor  ' 
do-ffor  us  to  attempt  to  put  out  work  oi  tills'  sort  end  lend  our 
nario  to  it.  At  the  sane  tino  I  bcliovo  that  your  diliicultioo . 
would  in  u  noaemro  bo  ovoroono  by  follov:inC  alone. flio  two  linos  -  •' 
indicated  by  you,  and  I  liavo  tl’.oroforo  proposed  and  will  take  up 
witli  our  llnginooring  Department  tiio  following:  • 

(1)  Dosienine- a  oylindor  naohdao  to  be  mao  just  as 
clicap  ac  will  bo  oonsiotont  with  Good  raid  propor  work,  tho  mocliaii- 
.iom  only  to  bo  sent  you  and  tho  oabinotc  to  bo  nanufaotured  in 
Iiueland  or  Gormany  or  wliorover  you  con  liavo  then  undo  clioafost,  ' 

2  5/ .01/ 10.  i'fconco  Graf. 


do  tliat  your  only  problem  would  bo  to  aooonblo  tho  mochaniam  in 
the  oabinoto.  Probably  the  could  lint  no  low  no  two 
Pouidn  to  pin;/  oithor  2-nlnuto  or  d -minute  rocordo,  and  2/l0  for 
n  aombinaulon  maohino  to  p  1  ay  both  typos  of  rocordo.  Y/hut  uo  you 
thinlx  of  t3ao  idoa  of  mr-.hlnr;  n  opooial  raacJiino  that  will  piny  only 
.taborol  rocordo  list Inc  at  a  low  prioo? 

3j3PorlraoatsT.rG  new  pretty  roll  completed  r.t  -'tho-  Labor¬ 
atory  on  an  indontructiblc  rooord,  not  nado  of  celluloid,  having  a 
very  anu  nnoov.u  ourfnoo.  fliono  x’ocordn  would  ho  vory  choan 
to  mn\  fn.cturo  and  I  boliovo  that  Ariborolo  could'  ho  lintod  an  low 
c.r.  a  chilling  in  Croat  Britain.  J  '  now  how  you  loolood  upon  tho 
reduction  in  tho  ?i-ioo  of  standard  records  in  'rgdend -and  you  niglit 
o-uonc  any  to  roduco  to  price,  of  amborclr:,  particularly  '  it  would  ho  ir.r-onnr  i.'lc  to  r.v.!:o  a  00 rrc r.pondi ng  reduction  ±n 
tnc  ntrndard  records;  hut  still  the  nitration  my  iuvvc  changod  rind 
you  nay  loch  upon  thin  quention  in  r.  difforont  way.  ' 

Aaotiior  idea  I  have."  alwayn  had  v;ao  tho  foaoihility  of 
uahing  a  C00-t3;roo.d  h-miLiuito  rooord,  which  would  ihoroforo  bo  of 
t3io  caino  diaaotor  an  tho.  Amborol  record  hut  only  tv/o  inehon  lone- 
Such  a  rooord  would  be  voiy  cheap  to  mho'  and  could  bo  lintod  for 
10  ponco  or  porhapo  loos.  If  would 'aloo  permit  tlio  construction- 
of  a  vory  cheap  maohiho'  in  wJiioh  tho  sound  box  would  bo  fed  from  ■ 
tho  record,  no  food  screw,  being  noooooory,  but  at  tlio  came  time  it 
ccald,  oi  courno,  bo  unc&  on  tho  regular  conbination  lmchincc.  It 
would  occupy  only  ha 3^  tlio  opaco  of  an  ordinary. >§,Jgs^§rd-  record 
although  of  tho  ocnao  loagth,  and  the  bo::  would  bo-  vory  compact  end 
portablo.  Lot  mo  liavo  your  viewn  frnnhly  ao  to  this- suggestion.  ■■ 
fhoro  would  probably  bo  no  nood  for  mahing  roqordo  of  thin  sort 

Mr.  Frank  L.  Dyer, 

President,  National  Phonograph  Oo., 

Orange,  New  Jersey, 

My  Dear  Mr.  Dyer 

I  beg  to  acknowledge  receipt  of  your  favor  of  April  5th, 
and  in  view  of  the  data  laid  before  me,  I  have  made  a  careful  study 
Of  the  proposition  offered  by  you  in  regard  to  your  general  repre¬ 
sentation  in  Mexico. 

The  conclusion  1  have  reaohed,  after  a  careful  consideration 
Of  the  matter,  is,  that  it  would  not  be  business  for  me  to  take  on 
your  general  agency  in  the  phonograph  line.  I  believe  the  profits 
to  be  derived  from  thiB  agency  are  not  sufficiently  great  to  cover 
the  expense  of  conducting  the  agenoy,  and  to  leavO  me  a  margin 
which  would  make  it  worth  my  while. 

I  greatly  regret  that  you  have  been  put  to  so  much  trouble 
in  this  connection,  and  I  thank  you  very  cordially  for  having  given 
me  the  opportunity. 

Very  truly  yours , 

«*»..  ~Jx&. 



{toy  s,  i9io. 

Ihonas  Graf,  Esq., 

national-  Phonograph  Co. ,  ltd. , 

Willosdon  Junction,  London. 

Boar  Mr.  Graf: 

Yours  of  tho  19th  inst.  has  hoon  rocoivod,  advising 
mo  that  you  have  forwarded  an  Idolia  Phonograph  to  tho  -one,  and 
I  am  very  glad  to  hoar  of  his  intorost  in  this  matter. 

Mr.  Edison  su^gosto  that  you  should  Icoop  the  Popo  sup¬ 
plied  with  records  from  time  to  time  if  you  see  no  impropriety  - 
in  doing  so. 

Yours  vory  truly, 



Hay  10,  1910. 


Thomas  Graf ,  Doc . , 

national  i'honograph  Co.,  Ltd., 

V.’i  lies  don  Junction,  London. 

Dear  Hr.  Graf: 

Hr.  Edison  lias  brought  up  more  or  less  forcibly 
during  the  past  few  days  the  question  of  whether  wo  arc  mailing 
profits  or'  not  abroad,  and  I  have  been  surprised  to  hoar  from  Hr. 
V/ostoe  that  your  reports  .to  him  hove  been  so  much  delayed.  He 
should  have  insisted  that  frequent' and  current  reports  should 
have  been  received  from  you  showing 'the  exact  condition  of  the 
business.  It  is  only  natural  that  Hr.  Edison  should  be  most 
deeply  interested  in  tho  success  or  failure  of  his  scheme  of 
putting  goods  to  you  at  cost,  and  he  does  not  want  to  have  to 
wait  for  any  long  period  to  elapse  before  finding  out  as  to  just 
what  may  be  expected. 

In  our  domestic  business  I  receive  on  the  1st  of  each 
month  from  the  Credit  Department  an  estimated  statement  of  what 
bur  collections  v/ill  probably  bo  and  at  tho  same  time  a  definite 
statement  of  what  our  collections  for  the  previous  month  were. 

It  seoms  to  me  that  some  such  scheme  ought  to  be  possible  with 
you  and  that  you  should  send  me  as  near  the  odd  of  each  month 
as  possible  a  statement  showing  the  estimate^,  sales  and  estimated 
oxponse  of  each  offico  f London,  Paris  and  Berlin)  for  the  month 

o/lO/lO.  national  phonograph  company  Thomas  Graf. 

just  past  and  a  definite  statement  tof  tho  sales  and  expense  of 
tho  preceding  month.  In  othor  words,  beginning,  say  for  tho  month 
of  i/lay,  1910,  you  should  send  me  a  statement  not  la  tor  than  June 
10th  giving  an  estimate  of  tho  result  of  tho  business  (sales  and 
exponso)  for  tho  month  of  May,  and  before  tho  of  July  you 
should  give  mo  a  similar  ostimatod  statement  for  tho  month  of 
Juno  and  also  a  'corrected  definite  statement  for  the  month  of. 
iIa y*  ln  "l:hiG  X7ay  1  would  novor  bo  more  than  one. month  behind 

on  an .potimotod  result  of  tho  business  and  never  more  than  two 
months  behind  on  a  substantially  correct  statement  of  the  roBult 
ff  th0  l3UOin®SB  oa°k  office.  Of  course  those  statements  could 
be  explained  in  any  .proper  way,  and  if  an- expense  was  properly 
ohargable  ovor  an  entire  year,  it  could  bo  prorated  for  oaoli  month. 
Is  there  any  reason  why  this  cannot  be  done?  If  it  can  be  done 
I  wish  you  wouia  give  propor  instructions  to  have  it-  put  into  • 
offoct.  , 

•  Yours  very. truly. 

pld/i  xm 



EDI50N-EE5ELL5EHAFT  m.h.h. 

V  10735 



‘Cfr.y May  25  th  1910 

Prank  L.Dyer,  Esq.  President, 

ITational  Phonograph  Company, 

Orange,  N.J. 

Dear  Mr. Dyer, 

Berlin  Sales  Office  Profit  and  loss  Sheet  for  1909. 

I  herewith  heg  to  hand  you  Profit  and  Lose  Sheet  (Factory 
and  Sale6  Office  combined)  for  1909  of  the  German  company. 

I  eliminate  from  this  letter  the  figures  it  contains 
about  the  factory,  firstly  because  I  wrote  you  about  these  in  my 
letter  attached  to  the  Factory  Profit  and  Loss  Sheet,  and  secondly 
because,  although  the  figures  had  to  be  combined  to  fulfil  the 
requirements  of  the  law,  they  should  not  be  considered  as  far  as 
they  refer  to  the  factory,  in  accordance  with  Mr.Fdison’s  arrange¬ 
ment  that  the  shutting  down  of  the  factories  and  the  loss  caused 
thereby  should  not  speak  against  the  Sales  Offices. 

I  also  refrain  from  giving  here  any  explanation  about 
General  Expenses  and  other  single  items  on  the  Sheet,  in  order  not 
to  make  thee  letter  too  voluminousand  to  keep  it  clearly  arranged. 

The  amount  of  Mk.15009.78  written  off  for  patents,  which 
makes  the  sheet  appear  more  unfavorable  than  it  actually  is,  should 
be  eliminated,  as  it  is  formal  only. 

The  loss  of  the  Sales  Office  is  given  as  Mk.105204.06 
to  which  we  must  add  10)£  depreciation  on  Furniture 
a/c,  Tool  a/c,  also  writing  off  the  Furniture  a/c  of 
our  former  Vienna  Office  »  3596.59 

108800 ! 6b 

Edlson-Oesellschaft  m.  b.  H. 

Berlin  sw.  48.  May  25th  1910 

Prank  I. Dyer,  Esq;  -2- 

forward  Mk.  108800. 65 

deduct  reserve  for  had  debts  carried 

forward  into  1910 .  "  5000. oo 

Mk.  103800.65  tfifeASQ 

or  in  American  currency •' total  lose  of  #24714. oo. 

If  we  apply  this  lose  againat  the  profit  of  the  London 
office  the  latter  would  he  reduced  to  #12462. oo.  Paris  I  expect 
will  ahow  a  lose  of  about  #6000-,  so  that  the  total  European  busi- 
neae  of  the  Salea  Officea  will  reault  in  a  small  profit  of  a  few 
thousand  dollars,  the  London  office  with  its  profit  of  #37176.- 
heing  the  only  paying  office. 

About  the  causes  of  the  unprofitable  work  of  the  Berlin 
office  I  have  very  fully  written  you  from  London  over  a  month  ago. 

The  reduction  in  price  of  our  records,  the  high  cost  price  of  the 
records  purchased  from  America,  increased  by  the  heavy  duty  and 
considerable  breakage,  leaves  this  office  with  so  small  a  margin 
of  profit  on  the  standard  records  that  even  with  the  utmost  saving 
of  expenses  they  could  not  show  a  profit  on  this  our  main  article, 
of  the  Phono  department.  I  have  also  outlined  in  that  letter 
referred  to  that  the  satisfactory  development  of  the  film  business 
in  1910  would  outbalance  this  difficulty.  I  have  also  provided 
further  reduction  of  expenses  for  1910,  as  outlined  in  that  letter. 

I  do  not  hesitate  to  state  that  the  business  in  the 
two-minute  record  in  this  country  will  show  a  further  decrease, 
as  the  interest  of  the  dealers  for  the  standard  cylinder  record 
1b  diminishing,  the  profit  since  the  price  reduction  being  too 
small,  and  the  competition  of  the  disc  so  great,  the  handling  of 
the  disc  so  much  more  profitable,  that  it  is  more  tempting  to  the 
dealer  to  turn  towards  the  disc  and  neglect  the  cylinder  trade. 

Edlson-Qesellschaft  m.  b.  H. 

Berlin  sw.  48.  May  25  th  1910 

Prank  L.Dyer,  Esq:  _3_ 

The  email  margin  of  profit  which  this  office  has  on  the  cylinder 
two-minute  record  makes  it  alto  impossible  to  make  concessions  to 
factor®  or  dealers,  or  to  go  to  great  in  advertising, 
travelling  staff,  as  it  would  not  be  profitable.  On  the  contrary, 
to  adjust  expenses  more  to  the  turnover,  I  had  to  make  reductions 
in  the  travelling  staff,  advertising,  and  all  round. 

The  Amber ol  record  cannot  yet  be  a  substitute  for  the 
two-minute  record  in  this  country,  because  the  number  of  Edison 
phonographs  in  use  is  comparatively  small  and  consequently  there 
are  a  few  machines  only  which  can  be  turned  into  Amberol-playing 
machines.  This  condition  would  undergo  a  change,  if  we  could 
bring  on  the  market  a  cheap  Amberol  machine  for  the  purpose  of 
popularising  the  Amberol  record.  No  other  manufacturer  here  has 
as  yet  attempted  to  make  such  a  machine,  it  therefore  rests  with 
us  to  do  something  in  that  direction. 

The  outlook  for  1910  in  this  territory  as  far  as  the 
cylinder  business  is  concerned,  is  not  bright,  although  as  I  stated 
in  my  letter  referred  to  before,  with  the  film  business  we  are 
doing  and  the  reduction  of  expenses  which  I  have  provided  for,  I 
expect  to  make  a  better  showing  this  year,  and  I  shall  be  glad  if 
in  showing  Mr .Edison  this  letter,  you  would  at  the  same  time  show 
him  the  forecast  of  the  German  business  given  in  my  letter  which 
I  wrote  you  from  London  about  a  month  ago. 

I  know  however,  the  issue  of  that  form  of  record  which 
is  gaining  here  in  favor  all  round,  the  disc  record,  will  bring 
about  a  change,,  create  a  new  interest  with  the  dealers,  and  bring 
about  a  revival  of  the  business.  It  is  needless  to  say  that  I  am 
absolutely  against  an  interruption  of  the  business  by  sudden  radical 
changes,  as  this  would  cause  disturbances  which  could  not  be  made 

Edlson-Qesellschaft  m.  b.  H. 
BERLIN  SW.  48. 

Frank  L.Dyer,Es<i: 

May  25th  X910 


good  any  more,  such  changes  alto  being  more  expensive  than  the 
continuity  of  the  business,  the  more  so  as  the  move  so  long 
delayed  which  will  bring  about  the  revival  of  the  business,  is 
near  at  hand.  But  whatever  Mr .Edison's  views  on  this  matter 
might  be,  of  course,  I  should  like  to  be  consulted  before  anything 
definite  is  decided.  Should  Mr. Edison,  however,  not  wish  to 
wait,  I  shall  be  glad  if  the  matter  is  being  discussed  and  decisions 
arrived  at  that  this  should  come  to  the  knowledge  of  a  very  limited 
number  of  parsons  only,  because  not  only  plans  decided  upon  but 
even  projected  plans  discussed  and  abondoned,  are  escaping  and 
are  being  reported  over  here  to  the  detriment  of  the  business  long 
before  I  know  them.  T  will  not  mention  many  instances,  but 
you  remember  the  closing  down  of  the  factories,  which  I  had  managed 
to  keep  practically  unnoticed,  so  that  people  should  become  used 
to  it  gradually,  was  reported  in  the  trades  papers,  contradicted  by 
you,  and  in  the  following  issue  of  the  American  Monthly  it  was 
publishd  by  Mr .McChesney.  The  experiments  with  the  discs,  long 
before  you  intimated  anything  to  ma  in  a  letter,  was  reported  to 
Bussel-Hunting,  who  told  people  here  and  in  France,  that  Mr. Edison 
is  going  to  make  a  wonderful  disc,  something  that  will  beat  every 
other  disc  etc. 

I  repeat  that  I  am  absolutely  for  the  continuity  of  this 
office,  because  any  radical  change  causes  a  disturbance,  a  distrust- 
and  we  have  obligations  to  our  dealers, -which  cannot  be  made  good 
any  more.  An  the  continuity,  as  I  showed  you  in  my  letter,  is 
less  expensive  than  any  other  method.  But  at  any  rate  I  should 
like  to  have  communicated  to  mgt^as  the  first  Mr .Edison's  opinions 
and  intentions, '  because  I  should  like  to  avoid  the  strain  caused 

BERLIN  SW.  48. 

Frank  L. Dyer, Bag;  _5_ 

by  uncertainty.  It  does  not  increase  my  personal  force  and  does 
not  help  me  in  my  work. 

Yoursyerj  truly^ 

^  vLiUet — 


Mr.  Shomas  Graf,  Managing  Director, 

Edison-Geselleohaff;  K.B.H. 

Priedriohstr.  10, 

Berlin,  S.W.  48, 


Dear  Sir: 

Your  communication  of  May  13th  addressed  to  Mr.  Dyer  has 
Been  referred  to  the  writer  for  attention  ana  reply. 

We  are  sending  you  under  separate  cover,  all  trade  letters 
ana  descriptive  matter  regarding,  the  Amberol  Attachment 
Proposition,  and  it  is  working  out  so  entirely  satisfactory 
in  this  country,  that  we  cannot  see  why  you  should  not  also 
take  advantage  of  it,  unless  there  may  be  something  in  the 
local  conditions  which  would  make  this  impossible. 

You  of  course  understand  that  the  records  are  being  sold  to 
the  Jobber  at  less  than  factory  cost ,  but  it  has  produced 
a  very  large  demand  for  the  Attachments ,  and  1b  resulting 
in  thousands  of  machines  being  brought  out,  whioh  have  been 
in  disuse,  and  will,  consequently,  make  Amberol  Record 

Por  your  information  wouia  state  that  in  less  than  two  months 
we  have  sola  nearly  16,000  Attachments;  thiB  in  addition  to 
approximately  30,000  Attachments  which  were  in  the  hands  of 
the  Jobbers  ana  Dealers,  which  have  also  been  moved;  in  other 
words  that  would  mean  there  are  45 « 000  fhonographs  which 
have  been,  or  will  be  equipped  with  the  Combination  Attach¬ 
ments  in  the  very  near  future ,  thereby  very  materially  in¬ 
creasing  the  demand  for  Amberol  Records. 

She  only  difficulty  we  have  found  in  handling  it  has  been  due 
to  the  demands  made  upon  us- by  people  who  had  previously  ob¬ 
tained  an  Attaohments  and  who  felt  they  also  should  be  privil¬ 
eged  to  purchase  ten  Amberol  Records  at  the  very  nominal 
price  of  One  Dollar;  and  some  few  oomplaints  regarding  break¬ 
age  in  the  special  records,  with  requests  for  replacement. 

Mr.  Shomas  Graf.  Ho.  2. 

but  in  view  of  the  fact  that  these  Records  are  being  sold  at 
bo  low  a  prioe,  we  absolutely  refuBe  to  replace  any  which  may 
have  been  broken  in  transit. 

Of  course  in  your  case  the  ten  special  records  which  we  ore 
using  might  not  be  acceptable,  and  this  feature  might  have 
to  be  changed  to  meet  the  conditions  aB  you  see  them. 

You  will  find  among  the  papers  an  outside  label  which  iB 
being  pasted  on  the  box  which  contains  the  records,  and 
which  specifically  states  that  we  will  not  replace  or  make 
any  allowance  for  breakage. 

She  Boheme  iB  working  out  to  the  advantage  of  all  concerned, 
and  the  Jobbers  and  Dealers  have  been  very  enthusiastic  about 
itas  is  indicated  by  the  enclosed  letter  which  has  been  is¬ 
sued  by  one  of  our  Jobbers,  and  is  only  a  sample  of  what 
has  been  done  in  oonnection  with  this  proposition. 

Hoping  you  will  be  able  to  take  advantage  of  the  plan,  and 
that  it  will  prove  as  satisfactory  to  yourself  as  it  has 
to  the  domestic  office,  and  with  kind  personal  regards,  I 
beg  to  remain. 

-Youra  very  truly, 

National  Phonograph  Company, 

Manager  of  Sales. 


May  27th,  19X0. 

Mr*  Thomas  Graf,  Managing  Director, 
Edison-Gesellschaft  M.B.H. 

Friedrichstr.  10, 
Berlin,  S.W.  48, 

yonF  i^miry  regarding  the  Combination  Attachment 
■Proposition,  about  v/hich.  I  have  written  yon  quite  fully  this 
respectfully  advise  that  we  have  now  under 
a  ~la?  rMch  we  Believe  will  produoe  results 
wnivia  11i  be  ?urprlsi-nS*  and  we  are  now  having  the  details 
now  Sd  ?J|u^  iStflS?ofUt  4t  lnt°  6ff9ct  8ometim®  between 

^^f5lyT^li:QOd :-n  V,r®  P^P03®  malting  it  possible  for  the 
fdda£°  f°*£|r  or  Beal|r  bo  give  away  six  Amberol  Records  to 
any  bona  fide  owner  of  an  Edison  Phonograph;  suoh  records  to 
S' el e°t?a  from  a  special  list  of  from  25  to  50  numbers. 

(not  catalogue  records,)  as  a  premium  for  actuallv  brinmine 
about  the  sale  of  an  Edison  Phonograph  of  any  type^not  oover- 
a  n^°lal  li0e?Se  7Moh  iB  ln  *s®  oa  second-hand  °°chf 
ines.  These  records,  f specially  made  for  this  purpose  ) 
are  not  to  be  offered  for  sale  to  the  public  underSvcir- 
oumstanoes^and  are  to  be  given  away  in  lotB  of  six,  no 

"l1p  Bp<30lalllr  engraved  eertifioate, 
ccAd-itions  _very  clearly  outlined  upon  its  faoe. 
^emL+°+5^pr°Vla?d  bhe  Jobbers  and  Dealers  in  quantities 
J®  2,®®*  requirements,  with  the  understanding  that  they 

5Snd  f11  '00na  owners  of  Edison  7 

ponographs*  the  certificate  entitling  the  owner  of  an  Edis™ 

3?er^ePLa°indK  T01*8  ^  KelSSig  l?sf  8  n 

after  he  haB  induced  someone  to  buy  an  Edison 
any  type*  ■  '  , 


Mr*  Thomas  Graf.  No.  2. 

If  the  Attachment  Proposition  is  a  good  one,  this  one  appears 
to  he  hotter,  beoause  it  begins  at  the  ground  up  by  induoing 
the  sales  of  maohines,  with  the  after  record  sales  resulting. 

It  is  impossible  to  supply  you  at  this  time  with  any  printed 
matter  or  descriptive  circulars  because  they  have  not  yet 
been  prepared,  but  I  will  take  great  pleasure  in  seeing  they 
are  supplied  you  at  the  earliest  possible  moment,  and  you 
may  then  determine  whether  or  not  you  oan  put  it  into  effect 
with  your  trade. 

Assuring  you  of  my  desire  to  co-operate  with  you  in  every 
way  possible,  I  beg  to  remain, 

Yours  very  truly. 

National  Phonograph  Company, 

Manager  of  Sales. 




Mr-  Stevens : 



6/13, /10. 

Referring  to  Kr»  Wypor's  letter  of  May  4th,  1  huvo 
discussed  the  question  with  Mr.  Edison  of  taking  out  insurance 
in  Australia  to  cover  our  possible  loss  of  profits  in  oaso  of  a 
fire  where  all  of  the  stock  is  carried  in  a  single  building. 

Mr-  Edison  thinks  this  should  bo  done,  provided  tho  cost  does  not 
substantially  exceed  50  Pounds  per  annum,  as  suggested  in  tho  let¬ 
ter  from  Thomas  Davis  &  Co.  Will  you  ploase  see  that  this  is  done. 

FLP/l’.vl?  P.  !>•  D. 




-ta£,  ■ 


Mr.  Stevens:  ^  6/13/10. 

I  discussed  with  Hr-  Edison  on  Friday  the  question  of  what 
would  happen  to  our  Australian  business  in  case  of  tho  death  ox 

serious  illness  of  Mr.  Wyper,  and  he  is  naturally  anxious  that 
there  should  be  someone  on  the  fiold  who  would  bo  competent  to 
fill  Mr.  Wyper' s  place  in  the  event  of  either  of  these  contingen¬ 
cies  arising.  Advise  me  what  you  know  of  Mr.  Wyper1 b  chief 
assistant,  end  particularly  as  to  his  standing,  reliability 
and  intelligence;  and  also  adviso  me  if  there  are  any  otiier  men  in 
the  line  of  promotion  who  oould  be  relied  upon  if  necessary. 
ELD/IWY7  F.  I-  D. 


Sept. -IS,  1910. 

Ehomac  Graf ,  Esq., 

National "Phonograph  Company,  ltd., 

Y/illesden  Junction,  Ion  don, 


My  dear  Mr.  Graf:-  •  . 

When  you  woro  hero  I  tolcl  you  that  some 
time  tills  Fall  fro  are  seriously  contemplating  consolidating 
the  Edison  interests  lioro  and  "bring  thorn  all  under  a  single 
corporation  having  the  name  "Ehomao  A.  Edison,  Incorporated", 
or  similar  name  in  which  "Edison"  will  "be  used.  I 
think  that  similar  changes  should  ho  mado  in  Great  Britain 
and  Australia,  and  believe  that  the  nano  "Edison,  limited" 
will  "be  a  very  strong  advertising  card.  Without  committing 
yourself  in  any  way  I  wish  you  \70uld  discuss  this  matter  with'. 
Mr.  Marks  and  soo  if  there  is  any  legal  objection  to  this 
change  being  made.  It  might  very  properly  include  a  consoli¬ 
dation  of  the  National  Phonograph  Company,  ltd.  and  the  Edison 
Manufacturing  Company,  ltd.  under  a. single  corporation. '  let 
me  know  if  this  schomo  can  bo  carried  out  in  Great  Britain 
and  what  the  cost  will  bo.  Also,  what  formalities  will  have 
to  be  obsorvod  in  the  way  of  documents,  otc.  Of  course,  you 
will  understand  that  I  do  not  want  to  have  this  matter- gone 


#2  -  Thomas  Graf,  Esq. 

aiiona  A-/ith  definitely  at  the  present  time ,  but  would  lilce 
to  be  fully  advised  as  to  what  will-  have  to  bo  done  so  that 
if  the  change  is  put  into  effect,  it  can  bo  nttondoft  to  with¬ 
out  delay . 

YQurs  very  truly, 



Ootober  6,1910.  . 

Thomas  Graf,  Esq. , 

Mgr. -national  Phonograph  Oo. ,  ltd., 

Wi lies den  Junction, 

Iionaon,  England. 

My  dear  Mr.  Graf:- 

When  you  were  over  hero  1  think  I 
told  you  generally  about  our  new  Bcheme  for  interesting 
desirable  dealers  throughout  the  country  in  the  sale  of 
Edison  phonographs  and  records  by  a  house  to  house  canvass 
and  a  free  trial.  The  general  scheme  is  as  follows: 

We  go  to  a  Jobber  and  ask  him  to  designate  a  num¬ 
ber  of  desirable  dealers  who  are  financially  responsible 
and  who  are  interested  enough. to  try  out  the  scheme.  We 
offer  to  furnish  the  dealer  a  special  wagon  at  a  rental, 
price  of  §4  per  month,  the  wagons  being  equipped  with 
special  raolts  end  boxes  to  carry  the  phonographs  and 
records  and  having  an  ornamental'  panel  on  each  side  and 
back,  indicating  its  character.  To  handle  the  business 

effectively  requires  an  initial  outfit  of  forty  machines. 

The  dealer 

and  these  machines  are  supplied  to  the  dealer^ on  ■oonsiga.- 

#2  -  Thomas  Graf,  Esq. , 

then  makes  a  house  to  house  convass  ana  leaves  a  phono¬ 
graph  and  one  or  two  dozen  records  at  any  placo  where  there 
seems  to  ho  a  aosirahle  prospect.  Two  or  three  days  later 
tho  dealer  oallo  around  again  ana  endeavors  to  make  a 
sale,  if  possible ,  Trot  if  not  the  machine  and  records  are 
taken  away.  If  possible,  salos  aro  made  for  cash,  but  in 
any  ovont  the  records  selected  aro  sold  for  oash  and  an 
installment  leaso  is  signed  by  tho  purchaser  to  pay  for 
the  machine  on  tho  installment  plan.  A  copy  of  each  in¬ 
stallment  lease  is  sent  to  tho  jobber  and  another  copy 
is  sent  to  us  and  a  now  machine  is  supplied  to  the  jobber 
for  tho  dealer’s  uso  for  every  installment  lease  that  is 
thus  sent  us.  We  aro  giving  the  jobber  three  months’ 
time  to  pay  for  the  goods,  taking  his  non- interest  bear¬ 
ing  note  for  the  same  and  in  rottim  the  jobber  gives  the 
dealer 'four  months'  time. 

I  hand  you  herewith  a  memorandum  from  Mr.  Good¬ 
win  addressed  to  me,  that  is  designed  to  give  you  complete 
information  regarding  the  details  of  the  sohome  ,  and  which 
is  accompanied  hy  forms  and  photographs  which  I'  think  you 
will  find  interesting  and  which. you  may  bo  able  to  make 
uso  of.  If  thore  are  any  points  that  you  do  not  fully 

#0  -  Thomas  Graf,  Esq. ,  ■ 

understand,  please  write  me  ana  I  will  have  the  questions 
answered,  by  Mr,  Goodwin.  %  purpose  in  writing  to  you 
at  this  time  is  that  Mr.  Edison  has  spoken  to  mo  a  number 
of  times  about  the  desirability  of  having  you  try  out 
this  scheme,  if  possible,  in. England.  A  trial  of  two 
wagons  might  bo  started  in  the  outskirts  of  London  ana 
kept  close  traok  of  Jiyuyou,  so -that  you  can  see  how  the 
scheme  would  probably  wotfc  out  if  extended  all  over  the 
oountry.  With  the  photographs  indicating  tho  kina  of 
wagons  we  use  here,  you  will  have  no  difficulty  in  get¬ 
ting  up  a  suitable  wagon  that  wouia  more  nearly  approach 
the  English  conditions.  I  want  you  to  try  out  the  sojjeme 
as  indicated  above  and  give  it  a  fair  ana  impartial 
trial  and  ao  all  that  you  oan  to  have  it  succeed.  1 
think  you  will  havo  no  difficulty  in  finding  at  least  ' 
two  goea  dealers  in  London,  who  will  be  enthusiastic 
enough  to  give  it  a  trial,  but  in  conneotion  with  thiB 
trial  you  want  to  give  them  every  necessary  assurance  of 
standing  baok  of  them,  so  that  they  will  not  bo  afraid 
to  go  ahead  and  make  the  experiment.  We  are  very  enthusi¬ 
astic  about  scheme  over  here  and  believe  that  it  opens 
up  a  great  opportunity  for  disposing  of  a  large  number 
Of  phonographs  and  reoords.  As  you  know,  the  Singer 
Sewing  Machine  Company  disposes  of  its  machines  almost 

#4  -  Thomas  Graf.NgBq, 

entirely  by  thiB  method  and  I  see  no  reason  why  phono¬ 
graphs  cannot  he  sold  as  readily  as  sewing  machines. 

I  also  see  no  reason  why  the  scheme  could  not  he  effect¬ 
ively  carried  out  in  England,  and  perhaps  pore  effective 
ly  than  in  this  oountry,  although  perhapB  details  will 
havo  to  he  varied  to  suit  the  ohanging  conditions.  At 
any  rate  1  wiBh  you  would  look  into  the  matter  very  oare' 
fully  and  if  you  have  not  time  to  do  it  yourself,  please 
turn  it  over  to  some  one  who  can  take  it  up  and  give  it 
serious  thought.  Advise  mo  fully  just  what  you  think 
ought  to  he  done  and  whether  you  believe  the  plan  oould 
he  carried  out  with  possible  modifications  in  your  terr¬ 
itory,  and  after  a  trial  has  been  had  in  England  then  we 
can  take  up  the  question  of  possibly  extending  it  into 
other  countlies. 

I  might  say  in  conclusion  that  this  plan  is  one 
that  Mr,  Edison  evolved  himself  almost  to  the  final  de¬ 
tails  and  we  are,  therefore,  anxious  that  it  shall  he 
given  an  absolutely  fair  trial  and  we  all  believe  that 
it  can  ho  made  a  groat  succosb. 

Yours  very  truly, 

FED/  AHK,  President. 

Enclosures,  ' 

London,  October  11th,  1910. 

Lear  Mr.  Byer: 

With  reference  to  a  ran  for  the  London  office  have  so 
far  not  found  anyone  better  suited  than  St.  I  have  had  two 
meetings  with  him  and  he  would  be  willing  to  come  in  view  of  the 
new  line,  which  he  considers  the  coming  article.  He  is  of  the 
opinion  that  the  needle  cut  disc  has  exhausted  its  possibilities 
(technical  not  commercial)  as  compared  to  the  phono  cut  disc, 
and  we  also  discussed  the  Victor-Gramophone  people  and  the  rumors 
which  they  are  spreading  amongst  their  factors  in  anticipation 
of  our  disc .  They  only  have  learned  in  a  general  way  of  your 
new  departure  and  are  confidentially  advising  their  factors  that 
as  a  counter  move  they  will  follow  on  the  lines  of  their 
past  policy,  by  bringing  out  a  competitive  disc,  probably  as  they 
have  done  in  previous  similar  instances,  by  a  distinct  firm. 
Beside  the  Gramophone  Co.  they  have  as  you  know,  two  subsidiary 
companies.  1.  The  Zonophone  Co.  distributing  the  Zonophone 
machines  and  discs,  the  latter  cheaper  than  the  Gramophone  disc. 
2.  The  Twin  Co.  distributing  the  still  cheaper  Twin  record. 

But  we  were  agreed  upon  this  that  whereas  they  had  to  deal  in  the 
past  with  competitors  financially  very  much  weaker  than  they  are 
themselves  and  against  products  in  which  they  had  a  longer  and 
better  technical  experience,  the  phono  cut  disc  is  new  to  them, 
and  at  the  least  they  begin  with  not  more  technical  experience 
than  we  do.  If  they  bring  out  a  phono  cut  disc  merely  for 
competition  temporary,  a  cheap  and  poor  record  such  as  the  Twin 

was  at  the  beginning,  their  move  will  fail  against  a  superior 
phono  cut  disc,  and  if  in  order  to  more  successfully  compete, 
they  improve  it  technically  and  by  recording  some  of  their  good 
.talent  on  it,  they  will  popularize  the  phono  cut  disc,  help  us  to 
create  a  market  for  it  against  the  needle  disc,  and  thus  defeat 
their  own  aim.  This  by  the  way  only. 

Hr.  Sterling  was  afraid  that  with  a  high  class 
product  bearing  Mr.  TUdison's  name,  we  would  consider  it  super¬ 
fluous  to  pay  him  what  he  would  expect.  In  other  words  he  con-  in¬ 
siders  himself  much  more  valuable  to  a  smaller  and  weaker  company 
whose  sales  he  can  increase  by  his  salesmanship  to  figures  which 
they  would  not  reach  otherwise.  But  between  you  and  me,  I 
think  the  best  man  we  can  get,  is  just  good  enough,  the  fight 
which  we  shall  have  will  require  a  first  class  man  for  every 
territory.  He  tells  me  that  he  does  not  get  any  salary  in  his 
present  position,  the  Columbia  pay  him  a  turnover  commission, 
limiting  same  to  a  maximum  of  £2000.00  ($10,000)  He  says  that  in 
the  short  time  he  has  v/orked  for  them,  he  has  so  increased  their 
business,  practically  nil,  when  he  started  that  he  expects  to 
reach  the  maximum  commission  in  the  first  year. 

I  don't  want  to  be  overhasty,  and  so  I  have  given 
myself  time  to  think  over  a  proposition  which  I  could  make  him, 
and  which  of  course  would  have  to  go  far  beyond  that  we  discussed 
at  Orange,  Of  course',  if  he  accepts  it  will  be  understood,  that 
on  our  part  the  proposition  is  not  final,  but  subject  to  your 
approval  and  suggestions.  I  shall  meet  him  again  to-morrow  night 
and  knowing  the  disc  trade  aB  he  does,  I  shall  abk  him  what 
turnover  he  thinks  he  can  obtain  the  first  year,  all  things  being 


normal  and  suited  to  local  conditions  and  his  own  figures  will 
enable  me  to  formulate  my  proposition.  I  think  he  will  be 
very  sanguine  in  his  estimate  of  the  turnover,  which  is  of  course 
so  much  the  better  for  arriving  at  a  suitable  commission  per¬ 
centage.  He  has  no  agreement  with  the  Columbia  people,  but  could 
not  leave  them  in  a  difficulty,  he  considers  four  months  an 
adequate  notice,  but  is  of  the  opinion  they  would  not  wish  to 
keep  him  long  after  notice,  knowing  that  his  interests  would  be 
with  the  new  position  and  company.  You  will  hear  from  me  as 
soon  as  I  can  give  you  further  news. 

In  referring  to  this  matter  please  mark  letters 
"strictly  confidential"  to  avoid  any  difficulties  and  unpleasant¬ 
ness  which  may  arise  from  premature  spreading  of  information. 

Please  excuse  my  scribbling. 

Sincerely  yours, 

(Signed)  Thomas  Graf 


FLINT  &  C?. 


Thomas  A.  Edison,  Esq. 

Orange,  II.  J. 

-w  ^< 

„  a  *  /n. 

.  v  " 

R .  S .  T .  -E  .1.1. VI. 


October  13,1910. 

Mr.  Thomas  Graf, 

National  Phonograph  Company, 

V/illdacLen  Junction, 

Eondon,  England, 

My  dear  Mr.  Graf 

1  have  before  me  the  Balance 
Sheets  and  Profit  and  Loss  Sheetsof  the  London.,  Paris 
and  Berlin  branches  for  the  five  months  ending  May  3lst, 
1910,  as  compared  with  the  same  period  of  last  year, 
and  1  am  again  constrained  to  write  you  regarding  the 
poor  showing  that  is  made  in  the  hopo  that  something 
may  be  done  to  improve  the  situation.  The  statement 
of  the  London  business  shows  that  with  sales  of  over 
sV'122,000,  the  actual  net  profits  were  only  $1,152.82. 

It  is  true  that  for  the  corresponding  period  of  last 
year  there  was  a  deficit  of  $521.34,  and  that  the 
sales  last  year  wore  about  $9,000.  more  than  this  year. 
At  the  same  time,  it  must  be  admitted  that  a  business 
that  1b  netting  Iobs  than  one  per  cent  profit  on  the 
sales  is  in  a  very  prooarious  and  unsatisfactory  con¬ 
dition,  so  much  so  that  very  small  items  of  additional 


#2  -  Mr.  Thomas  Graf, 

expense  would  entirely  wipe  out  the  profit.  As  a  matter 
of  feet,  I  have  not  tho  figures  before  me,  but  I  have  no 
aoubt  that  the  London  business  is  losing  very  heavily 
for  tho  reason  that  the  recording,  expenses  of  the  English 
business  are  absorbed  in  the  genoral  recording  expenses 
of  the  American  business  and  records  are  sold  to  you, 
therefore,  actually  below  cost.  In  other  words,  if  we 
took  your  entire  recording  expenses  and  addal.fc’the  dead 
cost  of  labor  and  materials  on  the  record,  wo  would  find 
that  the  price  wo  quote  you  would  be  very  much  Iobs  than 
the  records  aotually  cost  us.  I  do  not  say  this  at  all 
in  the  spirit  of  criticism,  but  merely  point  out  what 
tho  exact  situation  is.  Of  course,  the  loss  is  attri¬ 
butable  almost  entirely  to  a  falling  off  in  sales  of 
Standard  records,  because  there  is  a  small  actual  in¬ 
crease  in  the  sale  of  Amborol  records.  If  the  phonograph 
business  was  like  almost  any  other  business  and  we  were 
selling  you  exactly  the  same  articles  that  we  sell  in 
this  oountry  and  quoting  them  to  you  at  actual  cost, 
then  any  profit  you  might  make  in  selling  those  artioles 
would  be  just  so  muoh  money  ahead,  but  we  must  remember 
that  the  phonograph  business  is . in  the  nature  of  a  pub¬ 
lication  business,  and  while  we  are  issuing  one  edition 
of  the  publication  in  this  country,  wo  are  attempting  to 
issue  special  editions  of  the  publication  in  England, 
France  and  Germany. \  If  McClure ’ s  Magazine ,  for  example , 


#3  -  Mr.  Thomas  Graf. 

attempted  to  put  put  a  special  English  Edition  with 
different, articles  to  suit  the  English  taste,  it  could 
not  ho  made  a  success  unless  the  English  business  were 
large  enough  to  absorb  the  entire  expense,  and  this 
is  the  situation  whioh  aotually  confronts  us.  These 
statomonts  showing  a  continuing  bad  business  in  Europe 
are  most  discouraging  to  mo ,  and  I  have  the  greatest 
difficulty  in  explaining  them  to  Mr.  Edison.  The 
film  business  seems  to  bo  fairly  good,  and  I  believe  can 
be  substantially  increased,  but  are  we  not  foolish  in 
allowing  the  profits  on  tho  films  to  be  eaten  up  by 
losses  on  the  phonograph?  And  we  must  remember  that 
all  of  those  losses  whioh  take  place  in  tho  foreign 
business  eventually  have  to  be  assumed  by  the  American  • 
business.  I  am  getting  around  to  the  point- of  view 
that  so  far  as  the  phonograph  is  concerned,  it  is  hope¬ 
less  in  Europe  and  that  we  had  better  realize  that  faot 
before  continuing  for  an  indefinite  period  in  tho  bus¬ 
iness.  The  amount  of  the  sales  and  the  oost  of  mniHwg 
sales  are  so  small  in  one  case  and  so  large  in  the  other 
that  there  seems  to  be  no  Opportunity  of  making  profit. 
All  of  this,  of  oourse,  is  probably  unpleasant,  but  we 
understand  each  other  well  enough  to  have  a  perfectly 
frank  discussion  of  the  subject.  Do  you  really  think 
it  is  possible  to  continue  the  phonograph  business  and 
ovontually  make  it  a  success?  If  you  do  ,  I  wish  yOu 


#4  -  Mr.  Thomas  Graf. 

would  write  me,  telling  me  just  what  you  foel  the  future 
holds  for  us.  You  raoy  say  that  with  the  coming  disk 
machine  wo  ought. to  he  able  to  build  up  the  business 
again,  but  bear  in  mind  that  if  we  do  put  out  the  disk* 
we  will  have  very  largo  recording  expenses  which  will 
have  to  bo  absorbed  with  the  business. 

When  you  were  over  here  I  mentioned  to  you 
the  possibility  of  ghirfeing  some  jobber  or  other  repre¬ 
sentative  in  Great  Britain,  handle  the  phonograph  bus¬ 
iness  and  get  what  he  oould  out  of  it.  If  this  oould  • 
be  done,  wo  might  bo  able  to  handle  the  film  business 
in  such  a  way  as  to  make  profit,  because  the  expenses 
would  probably  be  small.  What  I  would  prefer,  if  poss¬ 
ible,  would  be  to  hawe  some  one  handle  the  business  and 
use  only  tho  records  we  mako  in  this  country,  so  that 
we  would  know  exaotly  what  they  would  cost  us,  because 
1  fear  that  if  the  attempt  is  made  to  make  Bpecial  Eng¬ 
lish  records,  there  nevor  oould  be  any  hope  of  building 
up  a  business  that  would  bo  sufficiently  large  to  absorb 
the  necessary  expense.  How  if. that  is  the  situation  and 
if  the  English  business  cannot  bo  brought  to  the  point 
of  absorbing  recording  and  other  expenses,  why  should 
we  not  faoo  the  situation  clearly  and  stop  it? 

So  far  as  Berlin  is  concerned,  the  statement 
which  1  have  is  relatively  enoouraging,  booause  it 
shows  a  net  profit  for  the  five  months  of  §2352,09,  as 


#5  Mr.  Thomas  Graf. 

against  a  defioit  for  the  corresponding  period  of  laBt 
year  of  $8,191.34.  As  the  same  time  the  net  profit  on 
the  German  business  amounts  to  only  about  on  the.  sales 
which  is  still  far  bolow  what  it  should  be.  And,  in  the 
German  business,  as  with  the  English  business,  we  are 
probably  deceiving  ourselveB  in  those  figures,  because 
tho  net  profits  are  undoubtedly  much  smaller  if  they 
exist  at  all,  owing  to  the  fact  tho  Gorman  business  does 
not  absorb  the  entire  recording  expense.  last  year  in 
Germany,  the  gross  profit  on  films  amounted  to  $17,053.32, 
and  I  have  no  doubt  that  if  you  oaloulate  the  expense  of 
handling  this  business  the  profits  on  films  alone,  would 
more  than  equal  the  not  profits  above  referred  to.  There¬ 
fore,  tho  situation  in  Germany  is  that  the  profit  we  are 
making  on  films  are  more  than  offset  by  the.  losses  that 
are  incurred  in  handling  phonographs.  Considering  the 
size  of  Germany  and  tho  character  of  her  people,  it  seems 
to  mo  that  the  sales  that  are  made  in  that  oountry  are 
so  small  that  they  are  practically  negligible.  In  other 
wordB in  a  country  with  a  population  of  over  40,000,000 
people,  our  ontire  phonograph  sales  are  probably  loss 
than  $75,000  per  year,  tho  gross  profit  not  more  than  ' 
$12,000.  Whon  you  take  into  account  tho  expense  of  mak¬ 
ing  these  sales  tho  wholo  thing  is  bo  small  as  to  be 
hardly  worth  considering.  Germany  1b  the  home  of  ohoap 


ff 6  Mr,  Thomas  Graf. 

talking  maohines  and  cheap  records,  and  with  the  Customs 
Tariff  in  vogue  in  that  country,  I  really  do  not  see 
how  it  is  possible  for  an  American  manufacturer  to  make 
effective  headway  in  this  business.  Therefore,  basing 
my  opinion  on  the'  reports  before  me  and  what  I  have 
thought  of  during  the  past  two  or  three  years,  I  really 
beliove  we  ought  to  fafcie  the  situation  frankly  and  if  - 
we  oonolude  that  the  situation  in  Germany  is  hopoless, 
to  take  the  bull  by  the  horns  now  and  close  up  the 
phonograph  business.  Of  oourse,  I  want  to  got  your  own 
views,  but  I  wiBh  you  would  consider  it  in  as  broad  a 
light  as  possible,,  and  tell  me  frankly  what  you  think 
we  can  do. 

The  showing  of  the  PariB  offioe  is,  of  course, 
a  little  better  than  last  year,  but  there  is  still  a 
deficit  of  §1997.52  as. against  §3656.77  for  last  yoar. 
Yet,  if  the  French  phonograph  business  closed  up  end 
wo  limited  ourselves  to  films,  we  might  be  able  to  make 
a  small  profit  in  France.  Wfty  should  we  not  do  this? 
What  possible  show  have  we  got  in  Paris  against  the 
cheap  Frenoh  and  Gorman  maohines,  when  we  consider  the 
tremendously  greater  amount  of  sales  of  the  Pathe  Com¬ 
pany,  for  example,  to  mention  only  one  instance?  Our 
entire  sales  in  France  do  not  exoeed  §26,000  a  year, 
and  this,  of  oourse,  is  absurd,  and  probably  less  than 


#7  Mr.  Thomas  Graf. 

1%  of  the  sales  of  the  Paths  Company.  Think  over  the 
things  I  have  said  above,  and  boll eve  me  that  1  am  only 
seeking  advice,  and  am  not  speaking  at  all  in  the  way 
of  oritioism.  The  situation  is  so  discouraging  that 
perhaps  I  may  bo  writing  in  a  more  pessimistic  frame 
of  mina  than  I  would  bo  if  1  had  a  few  days  to  think 
over  these  reports,  but  these  are  the  ideas  that  occur-' 
rod  to  me  immediately  after  looking  over  the  reports 
and  analyzing  them. 

Yours  very  truly, 


Pros! dent. 




PR  I  ED  R ICHSTR.  10. 

receipt  of  which  I  have  already  acknowledged  in  an  autograph 
letter,  in  which  you  review  the  records  situation  very  pessimis¬ 
tically:  I  have  been  thinking  a  good  deal  over  it,  and  although 

I  am  not  able  to  Bay  anything  very  encouraging  about  the  situation 
at  present  I  think  your  gloomy  view  as  to  the  outlook  iB  not  quite 
justified.  Generally  speaking,  the  cylinder  business  is  bad,  and 
although  I  have  hesitated  so  long  to  own  it  to  myself,  X  have 
come  round  to  the  view  that  with  the  present  means  at  least  a 
large  business  cannot  be  expected.  The  tendency  of  the  public 
is  towards  the  disc,  for  very  simple  reasons,  which  in  time  were 
bound  to  tell.  Leaving  out  of  consideration  the  question  of 
quality  of  Bound ?  the  disc  machine, has  been  reduced  to  such  a 
simple  mechanism*  that  with  the  exception  of  the  motor  it  practi¬ 
cally  cannot  get  out  of  adjustment,  and  it  requires  not  the  least 
intelligence  or  care  in  handling.  The  user  simply  puts  the 

disc  on  to  the  table  of  the  machine,  starts  the  lever,  lowers 
the  speaker ,  and  that  is  all  that  is  to  be  done.  And  the  phono- 
graph  party'' if  I  so  may  call  it  in  distinction  of  the  motor  part, 
will  practically  never  require  adjustment.  The  phonograph  part 


November  14th  1910 

Frank  L.Eser:  -2- 

X*-  I 

in  distinction  of  the  motor  part  consists  of  so  many  different 
parts  liable  to  get  out  of  order,  consequently  requiring  more 
care  etc. etc.  ,  that  the  simplicity  of  the  disc  machine  must  in 
time  contribute  to  its  popularity.  ■  Then  again  the  disc  record 
for  all  practical  purposes  unbreakable  does  not  require  the  care 
of  the  cylinder  records,  often  scratched,  cracked  etc.  Another 
advantage  is  in  the  commercial  methods  of  the  disc  business  over 
here,  where  it  has  been  an  established  practice  for  many  years 
that  the  disc  user  may  return  any  discs  he  no  longer  wants  to  the 
dealer,  and  on  purchasing  a  new  disc  a  substantial  allowance  is 
made  on  the  old  disc  returned.  These  and  other  advantages  have 
compelled  European  manufacturers  to  leave  cylinders  and  cylinder 
machines  alone  and  turn  to  the  disc ,  with  the  result  of  their 
influencing  by  their  activity  and  advertisements  etc.  the  prevail¬ 
ing  tendency  towards  the  disc  on  the  part  of  the  public.  To-day 
we  are  practically  alone  as  cylinder  aB  well  as  phonograph  manu¬ 
facturers  against  a  host  of  disc  manufacturers,  who  find  their 
line  a  profitable  one. 

What  the  possibilities  are  of  the  disc  business  over 
here,  is  perhaps  shown  to  you  from  the  enclosed  cutting,  a  report 
of  the  European  Gramophone  Company,  for  the  year  ending  June  30th 
1910,  theifc/profits  being  1.155,628  or  practically  ^778,140.  Then 
next  to  the  Gramophone  Co. there  is  the  combination  Odeon-Eonotipia- 
International  Talking  Machine  Co. ,  who  do  a  large  and  profitable 
business.  Then  there  is  Pa the ,  and  after  this  a  host  of  smaller 
concerns,  who  find  it  pays  them  to  do  business.  Even  the  Columbia 
Phonograph  Company, who  have  practically  withdrawn  from  the  Con¬ 
tinent  after  they  had  neglected  for  a  long  time  the  Continental 

November  14th  1910 

Edlson-Qesellschaft  m.  b.  H. 

BERLIN  SW.  48. 

Frank  I,. Dyer,  Esq: 

recording  end  of  their  business,  find  a  profitable  outlet  in 
England  where  they  do  business ,  of  course  not  to  be  compared  with 
that  of  the  Gramophone  Company,  but  still  of  sufficient  amount 
to  be  profitable.  For  this  assertion ,  -however ,  I  have  no  proof 
but  my  personal  conviction  formed  from  reports  and  conversations, 
and  X  think  it  is  quite  logical  to  assume  that  in  a  field  where 
the  Gramophone  Company  can  make  profits  like  those  named,  the 
Columbia  Phonograph  Co. in  their  infinitely  smaller  efforts  are 
able  to  get  a  share  in  the  business  that  will  pay  them.  Now  we  , 
are  about  to  launch  into  that  field,  and  it  would  be  sad  in  my 
view  if  we  crept  back  as  far  aB  Eurpe  is  concerned. 

It  is  true,  the  recording  expenses  are  important, 
perhaps  too  important  for  the  cylinder,  business  with  the  small 
margin  of  profit  and  its  smaller  possibilities  of  distribution. 

But  is  it  not  different  with  the  new  disc  line?  Will  not  a  good 
part  of  the  general  recording  expenses  have  to  be  incurred  whether 
or  not  we  make  special  discs  for  European  countries?  Will  it  not 
be  necessary,  or  if  not  exactly  necessary,  at  least  to  your  ad¬ 
vantage  to  maintain  one  recording  centre  and  two  or  three  record¬ 
ing  rooms  in  Europe? 

Please  look  over  the  report  of  the  Gramophone  Company. 
Perhaps  you  will  then  be  able  to  come  to  some  decision  one  way 
or  other,  which  will  give  me,  a  basis  on  whioh  we  can  work  here,  and 
that  confidence  which  is  necessary  for  any  success.  Do  not  mis¬ 
understand  me,-  I  do  not  consider  what  you  write  as  undue  criticism, 
the  record  situation  warrants  an  exchange  of  ideas  on  thatplan, 
but  I  think  conditions  are  quite  altered  since  the  decision  was 

Edison-Oesellschaft  nt.  b.  H. 
BERLIN  SW.  48. 

Prank  L.Dyer  ,  Esq. 

November  14th  1910 


taken  at  Orange  to  issue  a  disc ,  and  we  should  make  up  our  minds 
a  long  time  ahead  as  to  what  we  are  going  to  do,  so  that  we  can 
work  here  with  confidence,  knowing  that  what  we  are  doing  and 
preparing  now  is  being  done  with  effect  and  results  to  come  some 
time  in. the  future,  without  fear  that  this  or  that  preparation  or 
action  is.  hardly  worth  while  the  trouble,  as  it  might  be  over¬ 
thrown  at  any  time  by  a  sudden  decision  to  withdraw.  It  is  need, 
lesB  to  paint  or  describe  the  awf  u.lly  laming  effect  of  such  a 
situation,  which  of  course  is  not  brought  about  by  your  letter  of 
the  30th  but  was  more  or  less  present  ever  since  the  discon¬ 
tinuance  of  the  European  factories. 

I  must  anticipate  here  that  in  order  to  do  a  disc 
business  it  will  be  absolutely  necessary  that  local  records  are 
periodically  issued.  ThiB  can  be  done  on  a  smaller  scale  in 
addition  to  the  larger  issue  of  the  American  records  as  far  as 
they  are  suitable  for  our  market ,  but  on  however  small  a  scale  it 
is  done,  it  must  be  done,  otherwise  also  the  market  for  the  American 
records  will  be  lost,  or  it  will- be  so  small  that  it  is  practically 

As  to  the  saving  of  recording  expenses  I  think  I  can 
move  very  well  in  the  direction  indicated  in  your  letter. 

Paris,  The  French  cylinder  business  is  so  small  that  it  is  not 
worth  while  to  go  to  any  recording  expenses,  and  this-  saving  has 
been  effected  to  some  extent  in  the  past,  that  is,  as  you  will 
notice  from  the  French  repertory,  we  are  issuing  very  few  French 
selections  only.  But  this  can  be  carried  further  by  discontinuing 

November  14th  1910 

Edison-Qesellschaft  m.  b.  H. 

BERLIN  SW.  48. 

Frank  L.Dyer ,  Esq. 

to  make  French  records  altogether.  This  would  not  necessitate 
the  giving  up  of  the  French  office,  as  this  office  will  pull 
through  without  any  loss  to  us  through  the  film  business  and  the 
Commercial  Phonograph  business  they  are  doing  there,  and  we  need 
the  French  office  to  take  care  of  our  film  orders  and  film  ship¬ 
ments,  so  we  will  have  to  continue  the  French  office  if  for  nothing 
else,  for  the  sake  of  the  Eurpean  film  business.  At  the  same 
time  they  can  go  on  doing  such  business  in  cylinders  as  they  may 
get  for  the  old  selections.  Therefore,  unless  you  come  to  some 
general  decision,  what  I  should  like  to  know  is  this; 

1)  Do  you  want  us  to  discontinue  the  making  of  the  few 
French  records ' on  the  scale  of  the  past  two  years? 

2)  Do  you  want  to  give  up  the  Paris  recording  rooms,  or 
should  we  keep  them  for  your  purposes?  It  may  be  necessary  from 
time  to  time  to  make  records  for  you  in  Paris,  and  a  single  re¬ 
cording  trip  to  Paris  without  the  ubo  of  the  established  quarters 
will  in  loss  of  time  and  expenses  in  search  for  suitable  temporary 
quarters,  and  perhaps  the  unsatisfactory  results  obtained  in  such 
quarters,  cost  you  considerably  more  than  the  rent  and  up-keep 

of  the  Paris  recording  department,  which  according  to  American 
ideas  is  a  nominal  expense  only.  There  need  be  no  regular  staff 
at  the  recording  rooms,  in  fact  we  have  for  the  past  two  years 
had  no  Paris  recorder,  the  French  records  being  made  by  our  staff 
in  London  on  their  periodical  visits  to  Paris. 

Berlin.  The  record  situation  also  here  is  not  encouraging.  It 
is  not  such  that  it  would  warrant  our  going  to  large  recording 
expenses ,  and  I  would  suggest  an  arrangement  on  a  similar  basis 
as  in  Paris.  The  rent  of  our  recording  rooms  here  1b  Mk.2800  p.a. 

November  14th  1910 

Edlson-Oesellschaft  m.  b.  H. 

BERLIN  SW.  48. 

Trank  L. Dyer ,Esq.  -6-  1 

This  is  slightly  increased  by  the  up-keep  of  the  rooms,  telephone 
etc.  What  T  should  like  to  know  now  is: 

Do  you  want  me  to  arrange  matters  here  in  the  same  way  as 
in  Paris?  I  would  be  quite  in  favour  of  it.  Tirstly,  because 
the  record  business  does  not  warrant  large  recording  expenses; 
secondly,  if  we  branch  out  into  the  disc  business,  we  can  sell  the 
American  disc  and  can  periodically  make  German  discs  by  a  staff 
from  London,  which  is  quite  efficient  and  sufficient  for  that 

I  have  already  written  you  in  my  autograph  letter 
regarding  the  figures  you  gave  about  Berlin,  the  result  which  I 
reported  to  you  being  more  favourable,  the  net  profits  ofl/the 
gross  sales  being  above  12^.  X  also  enclose  here  2  comparative 
statements  of  the  gross  sales  and  general  expenses  for  1909  and 
1910,  which  show  an  increase  of  business  and  a  considerable 
decrease  of  the  expenses  during  the  last  seven  months. 

London.  I  am  very  confident  that  a  more  important  business  can  be 
done  there  with  the  disc,  England  in  fact  is  the  country  which 
is  responsible  for  the  greatest  part  of  the  profit  of  the  Gramophone  fir 
We  cannot  do  business  there  without  some  local  records,  but  we 
shall  be  able  to  use  with  advantage  the  greater  part  of  your  own 
records.  In  that  territory  also,  although  reduction  in  the' 
expenses  may  be  enforced,  I  think  you  cannot  do  without  a  record¬ 
ing  department  foryiur  own.  or-  the  American  records.  Therefore 
I  have  nothing  to  suggest  but  to  keep  it  until  we  get  into  the 
disc  business.  It  is  quite  plain  that  England  and  also  the 
Continent,  if  we  should  make  continental  discs,  will  and  should 

l.  b.  H. 

November  14th  1910 

Prank  L.Dyer ,  Esq. 

assume  the  recording  expenses  for  the  European  records ,  and  they 
will  he  able  to  do  it,  and  obtain  a  profit. 

The  transfer  of  the  cylinder  business  to  a  factor  is  to 
me  personally  out  of  question.  Even  if  the  factor  did  not  know 
that  we  are  going  into  the  disc  line,  it  would  be  impossible,  for 
me  at  least,  to  effect  an  arrangement  with  a  factor  satisfactory  to 
us.  No  doubt  some  one  factor  would  be  glad  to  have  the  Bole 
agency,  but  no  one  would  relieve  us  of  our  stock  or  good  part 
of  the  stock,  and  in  my  opinion  it  would  be  only  another  form  of 
the  end  of  the  cylinder  business,  as  we  could  not  give  any  factor 
sufficient  profit  to  re-factor  our  goods,  even  if  we  could  at  all 
get  thepresent  factors  who  were  on  the  same  basiB  with  him  in  the 
past  to  become  his  customers  in  future,-  jealousy  etc. 

would  prevent  them  from  buying  from  him. 

I  therefore  say:  keep  <W,  provided  you  are  in  a  position 
to  place  the  disc  on  the  European  market,  on  the  English  market 
within  the  next  4  or  5  mlnths.  I  will  be  able  to  report  to  you 

from  London  in  a  few  days  with  regard  to  the  man  I  have  in  view, 
and  if  we  could  come  to  some  arrangement  I  am  convinced  we  shall 
do  well  in  England  with  the  disc. 

Under  the  heading  Berlin  X  forget  to  mention  something: 
the  bad  situation  in  which  we  are  there  has  been  created-fWditly 
through  our  giving  up  our  Berlin  plant.  When  we  had  the  Berlin 
plant  we  assumed  all  the  recording  expenses,  and  the  Berlin  factory 
was  still  able  to  manufacture  below  the  price  at  which  we  are  now 
buying  from  you.  In  addition  to  this  we  have  now  to  pay  freight 
and  the  not  inconsiderable  custom  duty,  and  we  are  behind  with 
novelties  by  three  months,  whereas  formerly,  if  necessary,  we 

November  14th  1910 


Erank  L.Dyer ,Esq. 

could  issue  them  within  a  few  weeks.  I  think  the  dismantling 
of  the  Berlin  plant,  againBt  which  I  fought,  as  much  as  I  could, 
was  a  mistake  which  is  co-rssponsible  for  present  results. 

I  would  also  anticipate  that  at  some  time  in  future, 
when  it  has  been  shown  that  a  good  and  profitable  business  can  be 
done  over  here,  it  will  be  of  advantage,  in  order  to  increase 
the  profit,  to  have  some  small  plant  at  least  somewhere  in  Europe, 
where  the  most  necessary  disc  hits  can  be  turned  out  Without 
unnecessary  delay,  while  the  bulk  of  the  goods  may  be  obtained 
from  Orange. 

Please  have  a  talk  about  all  this  with  Mr. Edison,  and 
write  me  a  few  lines  giving  me  your  and  Mr .Edison's  v.iews,  and 
be  sure  that  X  will  not  take  ill  any  criticism. 

Yours  very  truly, 
i — 



Bdlson-Gesellschaft  m.  b.  H. 
BERLIN  SW.  48. 

Ve  rkftufe  und  General- 

Januar-Dozomber  1909 



General -Unkosten. 





























22254,  — 






















"  • 



307  85,— 












Verk&ufe-  und  General- 

Januar- Sept ember  1910. 

GroBB  Sales 






















75892, 65 

General  Expenses 
General -.Unkosten. 






212eo, — 


17744, 64 



11931, 44 

12714, 68 

Sa.  Mk.  571029,45 

Mk.  155781,7  6 


T'  Tacuba  No.  33. 

,  IJU, 

ORANGE.  N.J..E.U  A, 




Nov.  17,  1910, 

National  Phonograph  C° . , 

Orange,  N.  J. ,  U,  S.  A. 

Dear  Sir:«* 

As  previously  advised,  Messrs.  Hosier,  Bowen  &  Cook  have 
purchased  the  entire  stock  of  amusement  Phonographs  which  we  were 
oarrying  at  the  Mexican  office,  and  I  enclose  herewith  copy  of  an 
order  placed  with  us  by  Hosier,  Bowen  &  Cook,  covering  various 
Phonographs  and  Records. 

I  also  enclose  herewith  copy  of  my  letter  addressed 
to  Hosier,  Bowen  &  Cook,  under  date  of  the  10th  Inst.,  having 
reference  to  future  business  and  I  trust  the  terms  mentioned  therein 
will  meet  with  your  approval. 

Mr.  cook  haB  not  formally  acknowledged  receipt  of  my 
letter,  but  on  taking  up  the  matter  with  him  verbally,  the  conditions 
as  noted  in  my  letter  were  acceptable  to  him. 

Yours  very  truly. 






0  P  Y  . 

Order  No.  1011 

Mexico,  D.  P. ,  Nov.  17,  1910. 

To  National  Phonograph  Co,,  Orange,  N.  J. 

Please  Ship  to  Mosler,  Bowen  &  Cook,  Buor. ,  Mexico  City,  Mexico. 

c/o  H.  C.  Glenn,  Customs  Agent, 


Via  Ward  Bine  and  Mexican  By, 


Order  number,  gross  and  Legal . we ight  and  measurement 
must  appear  on  all  packages  and  also  on  invoice 

M.  B.  &  C. 

No.  1011. 



10  Gem  Combination  Phonographs 
20  Pireside  Phonographs  with  Cygnet  Horns. 

20  Standard  Phonographs  with  Cygnet  Horae  (Combination  Type) 
5  Home  Phonographs  ■  ■  "  "  "  » 

2  Triumph  Phonographs  h  *  *  n  n 

.  1000  Edison  Standard  Shaved  Blanks 

8  each  all  January  American  Vocal  selections 
15  each  all  January  American  Instrumental  Selections 

100  each  all  Jnauary  Mexican  Instrumental  Selections 
75  each  all  January  Mexican  Vocal  Selections. 

3  Home-  Straight  Horns  and  Cranes,  Black 
3  Triuyiph  Straight  Horns  and  Cranes,  Black. 

Ur* - •  A _ i 

(Signed)  Geo.  M.  Nisbett, 



Nov.  10, 


Messrs.  Hosier,  Bowen  &  Cook,  Suer., 
Apartado  No.  658, 

Mexico,  D.  F. 

Attention  of  Hr.  Geo.  w.  Cook* 
Gentlemens-  * 

Confirming  the  verbal  arrangement  in  connection  with 
granting  you  the  exclusive  sale  of  our  Phonographs  and  Records  in 
the  Republic  of  Mexico,  I  beg  to  submit  the  following  proposition* 
On  all  purchases  covering  Bdison  Phonographs  and 
Records  we  agree  to  allow  you  the  following  discounts  based  on 
United  States  list  prices: 


"G«ns" . . . . 5Q# 

"Firesides",  "Standards",  "Homes", 

"Triumphs",  "Idelias"  &  "Amberolas" . 60$ 


"Standard"  2  minute  Records . $.13  net 

"Amberol"  4  minute  Records . .  15  net 

"Standard"  2  min.  G.  0.  Reoords. . .  . . $.32  net 

"Amberol"  4  minvG.  0,  Records  , .  (ittst  $1.00)  Net  $.37 
Special  Royalty  Grand  Opera  "Amberol" 

Records  (List  $1.50)  $.57  net  (List  $2.00)  $.77  net 


The  prices  as  above  quoted  are  positively  net  and  no  cash 
discount  will  be  allowed.  We  shall  be  pleased  to  grant  you  a  credit 




M.  B.  &  C.  Cont'd, 

of  four  month*  from  the  date  of  Shipment  from  New  York,  goods 
deliTered  f.  o.  h,  vessel  Hew  York,  no  charge  for  packages. 

Advert  icing. 

We  shall  endeavor  at  all  times  to  keep  you  liberally 
supplied  with  all  advertising  matter  as  issued  by  our  factory,  same 
to  be  supplied  to  you  free  of  charge  f.  o.  b.  vessel,  Hew  York. 

In  reference  to  your  request  that  we  make  you  an  allowance 
to  cover  the  oost  of  advertising  our  goods  in  the  Republic  of 
Mexico,  this  is  a  matter  that  the  writer  will  be  obliged  to  take 
up  with  our  President,  Mfc.  Byeri 

We  shall  be  pleased  to  supply  you  with  a  full  list  of 
our  Jobbers  and  Dealers  in  Mexico,  and  also  a  further  list  of 
parties  to  whom  we  have  sold  our  products  at  list  prices  and  we 
further  agree  to  assist  you  in  every  possible  manner  to  build  up 
a  large  and  lucrative  business. 

Execution  of  orders  received  from  Mexico  by  this  Company. 

If  at  any  time  it  is;  deemed  advisable  for  us  to  exeoute 
orders  received  from  Jobbers,  Dealers  or  list  price  customers  in 
Mexico,  we  shall  only  do  so  with  your  permission  and  if  this  is 
granted  we  will  at  the  earliest  possible  moment  after  the  sale  is  effec¬ 
ted  render  you  credit  representing  the  difference  between  the  value 
of  the  goods  as  Invoiced  to  you  and  the  price  at  which  the  goods  are 

Duration  of  agreement. 

This  agreement  is  to  remain  effective  so  long  as  we  are 
satisfied  that  the  trade  is  being  properly  cared  for,  and  should  you 
at  any  time  desire  to  cancel  same  you  can  do  sp  upon  giving  us  60 




M.  B.  &  C.  Coat'd. 

notice,  in  writing  and  we,  on  our  part  reoerre  the  same  privilege 
should  we  at  anu  time  feel  that  we  are  not  being  properly  represented 
by  you. 

We  can  assure  you,  however,  that  appreciating  the  importance 
of  your  esteemed  house  and  anticipating  that  a  large  business  will 
follow  should  our  proposition  be  accepted,  we  are  sure  that  the 
agreement  as  above  outlined  will  prove  mutually  beneficial. 


The  matter  of  enforcing  our  agreements  must  necessarily 
rest  with  yoy  but  it  is  understood  that  our  prices  must  be  maintained 
and  should  you  at  any  time  find  that  our  agreements  are  being 
violated  by.  the  Jobbers  or  sealers,  their  supplies  should  be  immediate¬ 
ly  cut  off*. 


We  agree  to  leave  with  you  on  consignment  Records,  the 
number  to  lie  designated  by  our  Mr.  Stevens,  and  an  inventory  of 
such  Records  will  be  taken  in  the  presence  of  your  representative  and 
turned  over  to  you,  it  being  understood  that  these  Records  are  to 
remain  the  property  of  the  Rational  Phonograph  Company,  of  Orange, 

R.  J. ,  U.  S.  A.,  and  a  record  of  the  sales  shall  be  carefully  kept 
and  at  the  end  of  each  six  months  period  dating  from  the  time  to 
stock  is  turned  over  to  you,  an  inventory  is  to  be  taken  and  payment 
made  for  such  Records  as  you  may  have  disposed  of. 

These  Records  are  to  be  consigned  at  the  following  prices: 

"Standard"  Records,  cut-out  Selections  at 
$.10  each,  Mex.  Cy. ,  or  its  equivalent,,  $.08 




M.  B.  &  C.  Cont'd. 

"  "Standard"  Current  Records,  $.24  each,  Mex. 

Cy. ,  or  its  equivalent  $.12  Gold, 

Should  we  at  any  time  deem  it  advisable  to  request  the 
return  of  the  Records  consigned  to  you,  to  the  factory,  we  reserve 
the  privilege  of  doing  so( 

We  trust  that  the  proposition  as  outlined  above  will 
prove  acceptable  to  you  and  we  can  assure  you  that  should  this  matter 
be  brought  to  a  successful  issue  we  shall  render  you  every  assistance 
possible  in  this  entire  matter* 

After  giving  this  matter  due  consideration  we  shall  be 
pleased  to  have  you  advise  us  at  the  earliest  possible  moment 
as  to  your  decision* 

Tours  very  sincerely, 



P.  S.  It  is  also  further  understood  that  the  stock  of  Records 
left  with  you  on  consignment  will  be  insured  at  your  expense  and 
for  the  account  of  the  National  Phonograph  Co.,  Orange,  N.  J. 

National  Phonograph  Company  Records 
Correspondence,  Domestic  (1911) 

This  folder  contains  correspondence  and  other  documents  relating  to  the 
commercial  exploitation  of  phonographs  in  the  United  States.  Most  of  the  items 
are  letters  to  and  from  Frank  L.  Dyer,  president  of  NPCo.  Other  correspondents 
include  Leonard  C.  McChesney,  manager  of  the  Advertising  Department;  F.  K. 
Dolbeer,  manager  of  sales;  and  Leo  H.  Baekeland,  owner  of  the  General 
Bakelite  Co.  Included  are  letters  pertaining  to  the  manufacture,  distribution,  and 
sale  of  phonographs  and  records,  as  well  as  correspondence  about  litigation, 
patents,  and  other  legal  matters.  Among  the  documents  for  1911  are  letters 
concerning  the  Advertising  Department,  the  dissatisfaction  of  jobbers  and 
dealers  with  obsolete  record  stocks,  and  the  possible  use  of  Bakelite  in  records. 
Also  included  are  notes  regarding  the  equipment  and  supplies  necessary  to 
manufacture  disc  records. 

Less  than  1 0  percent  of  the  documents  have  been  selected.  Among  the 
unselected  items  are  letters  regarding  the  business  of  individual  dealers  or 
jobbers;  material  pertaining  to  California  trademark  legislation;  and  an  advertising 
plan  prepared  by  the  Calkins  &  Holden  agency  that  was  never  adopted. 


Jon.  3,  1911. 

Dr.  L.  K.  Baekeland, 

General  Bakelite  Company,  _ 

.100  William  St. ,  Hew  York. 

Dear  Dr.  'Baekeland: 

Your  favor  of  the  20th  ult.  was  duly  ro- 
oeivod.  Should  v/o  find  that  Bakolite  its  the  proper  nutorial 
to  use  for  our  now  disc  records,  the  general  proposition  you 
rnako  is  satisfactory,  namely,  to  pay  a  royally  for  records 
with  a  guaranteed  minimum.  The  figures  you  mention, '  however, 
aro  in  my  opinion  prohibitively  large.  The  phonograph  busi¬ 
ness  is  already  subjected  to  heavy  taxes  in  the  form  of  royal¬ 
ties  to  be  paid  to  artists  and  royalties  to  be  paid  to  music 
publishers ,  and  the  business  will  not  stand  too  much  of  an  ad¬ 
ditional  tax,  since  phonograph  records  are  becoming  more  and 
more  expensive  to  soil-  The  public  has  quite  a  mistaken 
idea  as  to  the  profits  which  aro  made,  in  the  talking  machine 
business.  It  is  largely  a' business  where  a  great  JJUBI^ostrfii 
articles  aro  sold  on  a  relatively  small  margin  of  profit. 

For  instance,,.  Mr.  Bldridge  R.  Johnson,  President  of  the  Victor 
Talking  Machine  Company,  in  a  letter  which  appears  in  the 

!3.  l/3/ll  •  NATIONAL  PHONOGRAPH  COMPANY^1’’  BaSkOlOJld. 

Talking  Maohino  World  of  July  15 ,  1910,  (page  07)  said: 

"We  do  not  make  large  percentages  of  profit.  let  me 

give  you  a  few  facts  and  figures:  We  ooixld  invest  the  capital 

invested  in  our  business  in  Pennsylvania  R.  R.  stock  and  pay 
twice  the  dividends  we  havo  boon  paying  for  the  last  ton  years, 
bosidos  accumulating  a  surplus  that  would  double  our  capital 
eventually.  The  Victor  dividends  now  not  but  2#  of  the  actual 
assets  of  the  company,  aftor  'Counting  good-will,  patents  and 

all  our  unostimated  valuable  matrices  at  the  sum  of  $2.00 . 

. With  all  tho3o  things,  wo  are  content  with  loss  actual 

profit  anu  less  dividends  per  capital  invested  than  the  Penn¬ 
sylvania  R.  R.  or  any  other  concern  wo  know  of." 

Assuming  that  40,000  records  per  day  are  made,  which 
you  stated  was  the  number  manufactured  by  one  of  our  competi¬ 
tors,  your  royalties  at  3  cents  each  would-  amount  to  $360,000 
a  year,  which,  capitalized  at  Ctjl,  would  mean  that  this  relative¬ 
ly  small  branch  of  your  busines  would  be'  figured- at  $6‘, 00,0,000. 

To  put  a  prohibitively  la-rge  tax  on  the  possible  use 
of  /Bake lit®'  would 'bo  a  discouragement,  because,  00  I  have  ex¬ 
plained  to  you,  wo  do  not  like  to  lot  the  opportunity  go  by 
of  trying  out  the  mater' al  and  at  the  .sumo  tine  there  would  be 
very  littlo  incentive  to  attempt  the  development  unloss  wo 
wore  assured  that'  in  the  event  of  success  wo  would  bo  in  posi¬ 
tion  to  use  it  without  paying  a  prohibitive  figure.  It  ; 

strikeB  mo  that  under  the  circumstances  (for  a  non-exclusive 
lioense)  a  royalty  of  10#  of  the  figure  you  mention  (i.o., 

3  mills  per  record)  would  be  a  very  liberal  one,  booause 
on  an  output  of  12,000,000  rooords  por  year  this  royalty 
would  amount  to  $36,000.  -  Of  course  I  do  not- know  how 
successful  we  will  be  in  marko ting  tho  diso  reoords,  but  I 
will  toll  you  in  confidence  that'  we  have  sold  muoh  more  than 
this  in  cylinder  records  per  year.  Undoubtedly  tho  business 
will  have  to  be  dovelopod  slowly,  and . therefore  I  do  not 

3-  l/3/ll.  NATIONAL  PHONOGRAPH  COMPANY  Kt1*  I..  11.  Baekeland. 

think  the  minimum  royalties  to  ho  guaranteed  should  go  above 
§15,000  por  year.  They  might  ho  mado  §7,500  for  the  first 
year,  §10,000  for  tho  second  yoar  and  §15,000  for  the  third 
and  succeeding  years.  Of  course  if  an  exclusive  license,  were 
granted  we  might  he  willing  to  pay  more,  hut  oven  if  you  gave 
us  an  exclusive  license,  do  you  think  you  would  ho  able  to 
prevent  othor  manufacturers  from  using  the  same  material? 

I  am  advised  by  Mr.  Aylsworth,  who  has  looked  very  carof.ully 
into  tho  situation,  that  a  great  deal  of  work  had  been  done 
with  this  material  bofore  you  ontorod  tho  field,  and  I  should 
judge  that  it  might  not  bo  unlikely,  if  we  mado  a  success  with 
Bnkolite ,  that  our  oompotitors  would  ho.  able  to  use' tho  sarno 
material  with  impurity.  V/e  have  found  in  other  matters 
relating  to  patents  that  they  are  shrewd  and  resourceful. 

I  hope'  that  you  will  take  up  this  matter  again 
and  that*  upon  reflection  and  in  viow  of  the  situation  in  the  , 
talking  machine  business  to  which  I  have  above  referred 
you  will  ho  able  to  moot  our  views.  . 

Yours  very  truly, 

FlD/lIYV/  ■  President. 

\p  '  K"  V3 



New  York,  jan.  9,  1911. 

Mr.  Frank  L.  Dyer,  ^ 

O/o  National  Fhonograph  Co., 

Orange,  N.  J. 

Dear  Mr.  Dyer:- 

I  am  in  receipt  of  your  favor  of  January  the  3rd, 
which  1  have  reaci  carefully.  Our  standpoint  is  the  following: 

hae  ?°  sufficient  technical  superiority  for  phono- 
graph  records,  uhere  is  nonuse  of  making  any  arrangement  whatever. 
ZZ.*  °n  0uher  ^aud,  it  has  a  technical  or  commercial  suneriority, 
ihv=++“,e  ?ay .  c?ns.iet  either  in  a  cheapening  of  the  material,  or  in7 
tiiaiian1,  tecknical  Product.  You  know  that  the  psxx  price  of 

!n?W  is  unusually  low,  and  there  is  every  likelihood  that  the 
n^1ii,Siih«fiher  after  a  while.  But  even  assuming  that  the 
?o1fe«0f  ,sl}0lla°  r0mains  what  is,  you  know  yourselves  that  there 
=??nsi5efable, savins  in  the  cost  if  Eakelite  he  used,  and  if  you 
ha  fai‘r°I^a+t0  mve  ^1S  Ea^elite  yourselves.  Now  we  think  it  would 
n?  W®  ^suid  receive  a  royalty  which  represents  a  portion 

of  the  cheapening  in  the  cost  of  production. 

£v0W  ??at  no*  only  the  oost  of  production  of  Bakelite  is 
cheaper  than  the  selling  price  of  shellac,  hut  our  experiments  here 
ft0™  the  F?ssibility  of  making  records  where  the  amount  of 
aaxeaite  is  considerably  less  than  the  amount  of  shellso  used  until 
^?w‘  even  if  there  wereno  cheapening  in  the  manufacture,  t 

t lie  met  that  you  would  he  able  to  send  Bakelite  records  hy  mail, 
wn.ll  be  a  considerable  cheapening  in  the  distribution  of  your  -product, 
tiow-a-days,  if  one  or  tv/o  records  have  .to  be  sent  to  distant-' cus¬ 
tomers,  the  daiKH  dealer  has  to.  spend  considerable  more  money  for 
expressage  and  for  packing  than  the  record  is  worth.  The  great 
strength  of  Bakelite  records  allows  them  to  be  sent  by  mail,  and 
without  the  necessity  of  expensive  wrappers. 

If, beyond  this,  it  can  be  demonstrated  to  the  customers  that 
Bakelite  records  wear  longer  and  have  some  other  advantage,  the 
enaii  royalty  which  we  are  asking,  can  be  covered  several  times  by 
a  slight  increase  in  price,  which  the  customer  will  pay  you,  and  the 
saving  in  the  cost  of  manufacture. 

,  *n  fact,  if  the  talking  machine  business  is  in  such  a  bad  con¬ 
dition  as^ you  mention,  this  would  givd1  you  a  chance  of  increasing 
consideraoly  your  income,  even  after  you  have  paid  us  the  royalty. 
You  certainly  do  not  mind  paying  us  a  handsome  royalty  if  you  can 
see  a  way  to  earn  two  or  three  times  more  by  doing  so,  and  there  is 
where  the  whole  matter  hinges.  If  Bakelite  has  no  commercial  merit 
tor  your  purposes,  why  that,  of  course,  would  end  the  matter.  If, 
°n  other  hand,  it  has  commercial  merits,  and  you  can  make  a 
profit  thereby,  it  would  be  only  reasonable  that  we  should  pet  a 
relatively  small  share  of  this. 


F.  L.  D - #3  jan.  9,  1911. 

The  figures  submitted  to  you  were  based. on  some  of  our  own 
estimates,  and  can  stand  on  their  own  merits. 

A-  Royalty  of  §15,000  a  year,  if  you  do  not  make  money  by  it, 
would  be  a  losing  proposition  for  you,  while  a  royalty  of  §100,000  a 
year,  if  you  oan  make  §300,000  by  it,  would  be  a  paying  proposition 
for  you.  '  ° 

You  ask  us  whether  we  would  be  able  to  prevent  other  manu¬ 
facturers  from  using  the  same  material.  I  can  answer  that  this  is  part 
of  our  business,  and  we  shall,  of  course,  use  all  means  to  uphold  our 

Ky  patents  have  been  taken  out  with  very  much  deliberation, 
and  one  of  the  main  reasons  why  I  took  out  foreign  patents  was  to  have 
the  benefit  of  as  much  criticisms  as  possible,  so  as  to  know  better  the 
value  of  my  claims  to  priority.  This  matter  has  been  thoroughly  sifted 
here  and  abroad.  Not  long  ago,  the  German  patent  office  gave  me  some 
sweeping  decisions  against  eight  parties  who  had  used  very  lengthy, 
complicated  arguments  against  my  priority  claims. 

I  beg  to  mention,  furthermore,  that  I  have  a  considerable 
number  of  supplementary  patents  pending,  whioli  will  be  published  by  and 

I  also  call  your  attention  to  the  faot  that  according  to  the 
terms  which  I  proposed,  you  have  a  right  to  cancel  the  contraot  every 
year,  and  that,  furthermore,  the  sum  stipulated  as  a  minimum  royalty 
is  a  progressive  one,  which  will  enable  jrou  to  thoroughly  investigate 
the  subject  without  assuming  too  much  risk.  We,  on  the  other  hand, 
are  wiHing  to  bind  ourselves  to  you  as  long  as  you  fulfill  the  terms 
of  the  contract. 

Ifi  your  arguments,  you  make  an  estimate  as  if  all  phonograph 
reoords  were  going  to  be  made  with  Bakelite.  We  would,  of  course,  be 
very  glad  if  thie  were  the  case,  but  I  was  more  conservative,  and  the 
minimum  royalties  proposed  have  been  based  on  the  assumption  that  only 
your  better  reoords  would  be  made  with  Bakelite,  and  that  for  those 
records,  you  could  ask  a  slightly  increased  price,  and  that  on  this 
account,  only  a  portion  of  your  output  would  be  made  that  way. 


Ur.  polboer:  l/9/ll. 

Hof erring  to  your  memorandum  of  tho  23rd  ult. , 
relating  to  your  rooont  trip  through  tho  IVost,  you  make  a  num¬ 
ber  of  ro commendations'  ao  to  what  you  think  should  bo  dono. 

I  wish  you  would  bring  up  tho  lie  various  recommendations  as  sep¬ 
arate  propositions  to  bo  considerod  by  the  Executive  Committee 
for  general  discussion. 


y.  l.  d. 


January  10$,  1911, 

Wm.  Pelzer;  MoChesney;  Water;  Stevens; 

I  would  like  you  to  consider  the  following  questions 
as  they  shcaild  he  disoussed  even  if  not  acted  upon  at  the  present 
•  moment; 

1  -  The  withdrawal  of  oertain  types  of  our  maohines  whioh  are 

equipped  with  the  straight  horn.  This  due  to  the  fact  that  the 

Cygnet  horn  apparently  has  the  call,  and  the  withdrawal  of  the  straight 
horn  types  would  he  advantageous  to  the  entire  trade,  as  they  would 
have  to  carry  a  less  number  of  types  in  order  to  show  the  entire  line, 

2  -  The  advisability  of  mailing  only  four  minute  type  machines  in  the 
higher  prioed  goods  such  as  at  least  the  Home,  thereby  obviating  to 

a  great  extent  the  machine  not  working  satisfactorily  in  the  hands 
of  the  inexperienced  consumer,  to  say  nothing  of  the  ignorant  dealer 
who  is  trying  to  show  them.  I  realize  this  would  destroy  the 

possible  recording  feature  with  oertain  types  of  our  machines,  and  it 
may  be  considered  best  not  to  make  this  change  at  this  time, 

3  -  Have  already  suggested  that  we  issue  a  out-out  list  of  two 

minute  records,  consisting  of  not  less  than  200  numbers.  There  are 

a  number  of  the  trade  demanding  this,  and  as  there  is  a  new  catalogue 
about  ready  .to  go  to  press,  this  matter  should  be  definitely  decided 
one  way  or  the  other. 

A  -  Mode! 
/sent  you  sp 
j importance. 

Model  "0"  reproducer  for  Home  and  Standard  Machines.  Have 
iu  special  memorandum  concerning  this  as  I  deem  it  of  the  utmost 

■  5  -  The  urgent  need  for  haste  in  connection  with  the  plaoing  upon 
the  market  of  .the  new  disc  machine  and  record.  This  should  be  very 
forcibly  impressed  upon  everyone  who  has  anything  to  do  with  the  pro-/' 
duction,  so  we’ may  put  new  life  into  the  business, 

These  subjects  for  your  eonsidertuFion, 

x>  V 

V4  A 

V\  ^'2'/  4j-> — X  ^Jt-vwv/-  1/  " /V? 

^ '  yin>  rdy^  /*~4 ,  ^"*~'t’  (t\)  j~Y^~'**^b  4t/'  v^  y/*7i 

/'?^v  ^o-y—  ^n^  y/h.  .^-r*  .  4^ . 

j/Vt^l^i  $-yy  V~~  ^4’* T^^J.  £->nr~t  &tr(j  £~i*-d-\.  ,  2- — ' 

X^Shi  -ST  DO 

•>  ^ryf .  . / «w-  >-vjrw^  p^?ZL^  <vy/^  - 

>rr-o  t/ >bj^  /~y~  if,  <rri  /tw* 

V  u 

o^U  . ^Y“  /i/'im  _ |^^4r . . . . . . 

^/^3^^***<  ,sv~w  i'/ ^  '* — — ■ 

suvx/c*^  'i^y>'''^/Ca  _ &'*i~**, 

^r~3  try  fi^>~/'  ^r>v-**r 

t-Syfr  pmn>  ^-v- A^, 

lC^4y^A-  -r  yCbt**y£$  s>^nAs(  ; 

Obv^r^^-r^.  /I  J^?r~v  ^?~ryyr 

. ,_  hrTlrr^.  Ir^,  c^-'— 

M  ,!r*r^~ .rftr?rr  '»vu>  >~t>  C-k* - ^ 

?  -V-M^.  ^Wd~/fetvAj  ^TVI^  ^jbn~VSrT>*^>  f-  _ 

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/tj  .  20,1911 

Mr.  P.  E.  Dolbeer, 
Dear  Sir:- 

In  conversation  with  Mr.  W.  0.  Crew,  of  the 
Elmira  Arms  Co.,  he  stated  he  haB  reliable  information 
that  the  Victor  Company  intend  to  entirely  discontinue 
the  manufacture  of  single  faced  Records  outside  of  their 
Red  Seal  Series,  and  that  they  intend  to  relieve  the 
trade  of  all  single  faced  Records  now  out. 

Mr.  Or ew  claims  that  the  demand  for  single 
faced  Records  is  steadily,  deerea^ing  and  that  they  soon 
will  be  obsolete.  If  this  olaim  be  true, and  the  tendency 
of  the  demand  is  towards  double  faced  RecordB  only, I 
think  our  new  product  should  be  arranged  to  meet  that 
demand,  and  that  we  should  avoid  criticism  from  the  trade 
in  offering  a  single  faced  Record  which  our  competitors 
have  learned  from  experience  is  no  longer  in  vogue  and 
are  arranging  to  discontinue. 

This  for  your  information  and  consideration, 



Feb.  2<!>  iD'i'Si 

2)r.  1.  H.  Baekeland, 

100.  William  St., 

How  York  City. 

Boer  Dr.  Baekeland: 

I  mm  returned  to  my  office  froa  a  trip 
to  Cuba  end  find  yours  of  the  3rd  Inst.  calling  attention' 
to  the  fact  that  your  letter  of.  January  9th  had  not  boon 
answered.  I  did  not  answer  the  letter  promptly  because- it 
scorned  to  mo  that  wo  were  drifting  apart  rather  than  coming 
together  and  had  hoped  to  call  in  to  see' you  in  order  to' 
chat  over  the  matter  hut  was  unable  to  do  so. 

As  I  have  written  you-,- we  would  like  to  have  the 
opportunity  of  experimenting  with  Bakelite  and  are  willing 
to  pay  for  the  option,  giving  us  the  right  at  the  end  of  the 
option  period  either  to  drop  the  matter,  if  our  experiments  ' 
with  it  are  unsuccessful,  or  to.  continue ,  if  the  experiments, 
are  a  success; .but  we  would  not  wish  to  undertake ' tho  exper¬ 
imental  work  unless  there  was  some  satisfactory  assurance 
that  a  reasonable  arrangement  could  bo  made  if  wo  decided, 
to  adopt  it.  ~  ■  '  i 

Yopr  suggestion  of  a.  royalty  of  3j$  perr  record 

~/r24/ll.NflT|0NAL  PHONC 

Dr.  1.  H.  Baekeland. 

waa,  ao  I  wrote  you,  too  lurgo  to  Do  considered,  and  you 
havo  not  Made  any  counter  proportion.  As  X  wroJ.o  you  in 
mine  of  January  3rd,  if  the  royalties  wore  throe  mills  per 
record  it  would  amount  to  $36,000  a  year  on  an  annual  Tnisi- 
nosc  of  13,000*000  records,  and  we  would  Do  willing  to  agree 
that  these  royalties,  if  wc  adopted  Bakolito,  would  at  least 
ocual  $7,500  for  the  first  year,  $10*000  for  the  second  yoar 
and  $15*000  for  the  third  and  succeoding  years.  It  seems 
to  me  that  this  is  a  very  fair  offer,  ho cause  we  would  not  he 
ashing  for  an  exclusive  contract,  and  if  we  made  a  succoss 
with  Bakolitc  and  our  competitors  had  to  use  it  thon  you 
would  oo  in  position  to  negotiate  with  them  and  exact  larger 
royalties.  Surely  the  company  that  does  the  pioneer  work 
oug.Tb  to  oo  cnconragod,  hut  we  certainly,  could  not  go  ahead 
and  develop  the  material  wit;:  the  thought  that  if  wo  suocoed- 
od|pd  decided  to  use  it  wo  might  he  facing  a  tux  that  would 
ho  very  largo.  I  do  moot  sincerely  hope  %>on  reflection 
that,  you  will  he  able  to  moot  me  in  these  views. 

'•  Bcliovc  mo. 

Yours  very  truly, 



February  27th,  1911 

Campaign  carried.  out~Tn  October,  Hovember  and  December  until  I 
could  Get  the  sales  for  January .  7/hen  I  received  the  December 
figures,  I  started  to  tabulate  the  results,  but  then  it  occurred 
to.' me  that  the,  advertising  in  December  might  have  created  more  of 
a  demand  than  usual  and  that  the  January  sales  to  Dealers  might 
be  larger  in  consequence.  Consequently,  I  decided  to  tabulate 
the  sales  for  October,  Hovember,  December  and  January  in  order 
to  mate  the  comparison  as  fair  as  possible. 

7/e  began  this  special  campaign  in  Philadelphia  in  the  early 
part  of  October.  The  first  advertisement'  in  the  series  v/qs  in¬ 
serted  on  Oct.  15th,  but  for  several  days  prior  to  that  three 
of  the  salesmen  visited  as  many  of  the  Philadelphia  Dealers  as 
they  could  reach,  explaining  the  plan  and  urging  their  co-operation. 
Simultaneously  with  the  appearance  of  the  first  advertisements,  the 
salesmen  distributed  a  placard  to  all  Dealers  and  the  Philadelphia 
Bulletin  in  turn  also  distributed  placards  connecting  the  Bulletin 
with  the  campaign.  The  Bulletin  placard  oalled  attention  to  the 
Edison  advertisement  in  the  issue  of  Oct.  15th.  The  advertisement 
in  the  Bulletin  occupied  a  space  of  14"  deep,  and  4  columns  wide. 

Three  of  the  salesmen  worked  two  weeks  in  the  field,  two  more 
worked  the  second  weak  end  after  that  the  assistance  of  the  sales¬ 
men  7ms  withdrawn  because  the  men  7/ere  needed  in  the  wagon  terri¬ 
tories.  The  same  size  advertisement  was  run  once  a  week  for  the 
eight  follov/ing  v/eoks.  Each  day  the  advertisement  appeared  the 
Dealers  displayed  a  card,  distributed  through  the  assistance  of 
one  of  our  salesmen,  and  another  card  distributed  by  the  Philadel¬ 
phia  Bulletin.  During  the  first  week  of  the  campaign,  Mr.  Rinehart 
of  the  Y/indov/  Display  Department,  arranged  a  special  window  display 
in  the  stores  of  H.  A.  -Veymann  &  Son,  C.  J.  Heppe  £  Son,  Penn  Phono 
graph  Co.,  and  Loui3  Buehn  £  Bro.  During  the  middle  weeks  of  the 
campaign,  we  put  up  BOO  eight  sheet  posters  in  Philadelphia,  the 
display  continuing  for  four  weeks. All  together  we  spent  .'''2297.47. 

The  only  way  that  v/e  can  tell  what  results  were  achieved  by 
the  campaign  is  to  make  up  the  figures  shovring  the  loss  or  gain 
in  the  business  of  the  four  months  as  compared  v/ith  the  same  months 
of  1909-10.  The  following  table  shows  the  figures  for  the  six 
different  sections  of  the  country,  and  also  the  figures  for  Boston, 
Hew  York,  Philadelphia  and  Chicago.  Boston,  Hew  York  and  Chicago 
are  the  only  citieB  large  enough  to  be  compared  with  Philadelphia. 

4  Mos.1910 

Hew  Eng.  89,626.27 

Middle  Atlantic 232,087.98 
Southern  59,185.75 

Middle  77estern638,299.23 
Far  V/estem  159,261.37 
Cam  da  94,745 .39 

1 ,273 ,205.99 

4  Mo a. 1909 
■  98,019.86 



loss  or  Sain 
8,393.59  loss 
8,579.50  '• 

15,565.46  " 

27,723.76  « 

37,212.28  " 

19.302.59  Gain 
78,172.20  1033 

Boston  37,904.87  36,349.55 
Her?  loik  52,773.21  63,608.13 
Philadelphia  44,085.99  40,673.22 
Chicago  216,937.49  209,421.58 

1,635.32  Gain 
10,834.92  loss 
4,212.77  Gain 
7,515.91  Gain 

Tho  foregoing  table  shows  that  the  'loss  in  the  Middle  Atlantic 
States  was  practically  3  l/2  per  cent.  Hew  yortc.  City  made  a  loss 
while  tho  other  three  cities  made  a  gain.  Boston  had  the  advantar  e 
of  tho  special  advertising  work  in  connection  with  the  exhibit  of 
which  Hr,  Dolbeer  had  charge,  and  the  Chicago  business  is  uncertain 
because  of  the  fluctuating  volume  of  tho  Babson  Brothers  business. 

If  v/o  assume  that  Philadelphia  wpuid  have  made  tho  some  per¬ 
centage  of  loss  as  was  made  throughout  the  middle  Atlantic  States, 
then  we  must  deduct  3  l/2  per  cent  from  tho  business  from  October 
to  January  of  last  year,  showing  that  had  it  not  been  for  the  adver¬ 
tising  the  probable  business  in  Philadelphia  would  have  been^39,249.66. 
If  we  assume  that  this  basis  is  reasonably  correct,  then  we  find  that 
we  must  deduoe  that  the  advertising  campaign  in  Philadelphia  pro¬ 
duced  an  increased  volume  of  business  amounting  to  §5,636.33.  This 
increase,  of  oourse,  is  not  sufficient  to  warrant  the  expenditure 
of  §2,297,47.  It  is  interesting,  however,  as  showing  that  sales 
can  be  influenced  by  intensive  work  of  this  kind.  I  believe  that 
could  we  have  continued  the  advertising  for  another  eight  weeks 
we  would  have  derived  a  greater  return  for  the  expenditure.  I 
also 'think  that  could  we  have  had  the  assistance  of  at  least  one 
salesman  in  Philadelphia  for  the  entire  eight  or  ten  weeks  that  the 
campaign  was  really  in  operation  we  would  have. added  from  25  to  40 
per  cent  to  the  gain  over  the  same  period  last  year. 

Aside  from  the  increased  business,  resulting  from  the  campaign, 
the  salesmen  called  on  jsa«e4£y  nearly  every  Dealer  in  Philadelphia, 
for  the  first  time  since  the  company  had  been  in  business.  As  a 
result  of  their  visits,  we  removed  from  our  files  about  20  abso- 

National  Phonograph  Company  Records 
Correspondence,  Foreign  (1911) 

This  folder  contains  correspondence  and  other  documents  relating  to  the 
marketing  and  supply  of  phonographs  and  cylinder  records  in  Europe,  Australia, 
Mexico,  and  elsewhere.  Most  of  the  items  are  letters  to  and  from  Frank  L.  Dyer! 
president  of  NPCo,  and  Thomas  Graf,  managing  director  of  NPCo,  Ltd.,  and  the 
Edison  Gesellschaft.  Among  the  items  for  1911  are  letters  pertaining  to 
European  copyright  legislation,  the  Berlin  office  and  agreements  with  German 
composers,  and  the  possible  employment  of  a  new  European  executive. 

Only  one  item  has  been  selected:  a  letter,  with  notations  by  Edison, 
regarding  the  possible  employment  of  a  new  executive. 

I  received  your  letter  of  the  12thHnst/at  th<^ 
same  tiffe  when  I  was  prepared  to  give  you  some  more  infor- 
mati^ft.  I  have  been  bach  in  London  since  Jan.  16th,  having 
reamed  via  Berlin  and  Paris;  in  each  place  I  have  spent 
a  few  days.  The  early  part  of  January  I  spent  in  Vienna 
to  find  out  all  about  the  agreements  of  the  Gramophone  Co. 
with  publishers  and  composers  there  and  see  what  we  could 
do  ourselves. 

Since  1  returned  I  have  tried  to  ascertain  the 
facts  about  your  report  re  a  doubtful  speculative  transac¬ 
tion,  but  all  I  could  hear  was  this: 

Sometime  ago  S.  and  a  London  factor,  Mr.  Hayslep, 
intended  to  float  a  small  company  to  send  taximeter  cabs  on 
the  road.  They  intended  to  start  with  nine  taxis.  Some 
of  tho  taxi  companies  have  given  large  dividends  and  con¬ 

sequently  many  people  thought  a  lot  of  money  could  still 
be  made  out  of  it.  So  about  a  year  ago  Damage  floated  a 
new  company,  in  which  his  brother-in-law,  Mr.  Murdoch, 
is  interested.  He  is  one  of  the  directors.  But  S.  has  with¬ 
drawn  long  ago  from  the  Hayslep  plan,  and  as  far  as  lean 
hear  Hayslep  has  not  been  able  to  realize  his  plan. 

.  V/ith  regard  to  S.'s  proposition,  I  have  obtained 
the  fo ID  owing  information: 

1.  Prom  1894  to  1902  he  was  employed  by  S. 
Hoffnung  1-  Co.,  Ltd.,  of  Hew  York  (exporters). 

He  started 


there  as  an  office  hoy,  hut  ended  up  as  Department  Manager 
and  Buyer. 

a.  In  January  1903  he  came  to  london-  was  em¬ 
ployed  hy  the  Gramophone  Co.  as  special  traveler.  At  the 
end  of  1903  he  started  the  British  Gramophone  Co.  for,  the 
Gramophone  Co. 

3.  At  the  end  of  1904  he  left  and  started  the 
Sterling  Record  Co.,  which  soon  after  the  reduction  of  our 
records  to  l/-  went  into  liquidation. 

4.  For  the  last  two  years  he  has  heon  in  the 
Rena  and  Columbia  Co.  The  Rena  Co.  was  started  hy  Mr. 
Rodkinson ,  the  gentleman  who  you  saw  at  Orange  submitting 
his  famous  plan  of  consolidating  various  talking  machine 
interests  to  you.  The  Rena  Co.  manufactured  a  line  of 
German  disc  machines,  for  which  Mr.  Bcrgmann  furnished  the 
motors, and  the  discs  were  to  he  supplied  under  agreement  hy 
the  Columbia  Co.  The  principal  market  was  to  he  England, 
hut  the  Gramophone  Co.  anticipated  them  hy  several  moves 
and  the  Reno  Co.  had  it  seems  exhausted  their  means  before 
they  could  actually  come  on  the  market.  Then  3.  went 

with  the  Columbia  Co.  as  British  Manager  and  has  since  worked 
up  the  very  small  business  of  these  people  to  a  respectable 
figure.  The  Columbia  disc  has  since  obtained  more  promi¬ 
nence  than  it  deserves-  Mr..,  S.  Tells  me  they  have  shipped 
out  during  December  100,000  records,  which  is  a  good  deal 
for  the  C.  Co.  in  this  country. 

Mr.  S. ,  as  I  told  you,  is  a  personal  factor  in  the 
business  here,  and  the  increased  business  of  the  C.  people 
is  solely  due  to  him. 


I  do  not  care  to  make  inquiries  of  the  Cramophone 
Co.  unless  you  wish  me  to  do  so,  and  I  cannot,  of  course, 
make  inquiries  of. the  Columbia  people.  Perhaps  you  will 
he  kind  enough  to  let  me  have  your  opinion  and  directions. 

If  I  may  ho  allowed  to  give  you  advice,  I  would 
suggest  to  take  a  man  who  is  familiar  with  the  history  of 
the  business  and  with  business  methods  over  here,  because 
Americans ,  coming  fresh  from  across  the  sea,  have  to  pay 
dear  for  their  apprenticeship  over  here  and  until  it  will 
cost  the  company  a  lot  of  money  until  he  has  found  out  what 
others  already  know.  This  I  have  found  to  be  the  case  not 
with  us  only,  but  with  a  number  of  other  American  companies. 
In  the  Gramophone  Co.  there  is  no  American  Head,  with  excep¬ 
tion  of .  Clark,  who  did  not  have  any  success  when  in 

Trusting  to  hear  from  you  soon,  I  beg  to  be, 
with  kindest  regards, 

Sincerely  yours, 

Thomas  Graf. 

Private  and  confidential. 


The  Foreign  Department  was  established  in  1900  to  handle  foreign  sales 
of  phonographs,  sound  recordings,  projectors,  films,  and  other  products 
manufactured  by  NPCo  and  the  Edison  Manufacturing  Co.  Its  first  manager 
was  Charles  E.  Stevens.  He  was  succeeded  in  1902  by  his  brother,  Walter 
Stevens.  The  operations  of  the  department  were  later  expanded  to  include  the 
products  of  the  Bates  Manufacturing  Co.,  Edison  Storage  Battery  Co.,  and 
Edison  Business  Phonograph  Co.  In  February  1911  the  department  became 
part  of  Thomas  A.  Edison,  Inc. 

The  letterbooks  contain  tissue  copies  of  outgoing  correspondence 
generated  by  Walter  Stevens  and  his  assistant  manager,  Louis  Reichert.  Only 
four  of  the  books  created  prior  to  the  formation  of  Thomas  A.  Edison,  Inc.,  are 
extant.  They  cover  the  periods  May  1908,  January  1909,  March  1909,  and 
September  1910-March  1911.  The  letters  in  the  first  three  books  pertain 
primarily  to  the  sale  of  phonographs  and  recordings,  but  there  are  also 
references  to  motion  pictures,  numbering  machines,  storage  batteries,  and 
other  Edison  products.  Most  of  the  correspondence  in  the  fourth  book  concerns 
storage  batteries.  Among  the  correspondents  are  Thomas  J.  Kennedy,  resident 
manager  of  the  Compania  Edison  Hispano  Americana  in  Buenos  Aires;  Rafael 
Cabanas,  L.  L.  Lewis,  and  George  M.  Nisbett  of  the  Mexican  National 
Phonograph  Co.  in  Mexico  City;  William  W.  Wyper  of  the  National  Phonograph 
Co.  of  Australia,  Ltd.,  in  Sydney;  and  William  G.  Bee,  sales  manager  of  the 
Edison  Storage  Battery  Co.  Included  are  letters  to  customers  and  agents  in 
Africa,  Asia,  South  America,  Europe,  and  the  Caribbean,  as  well  as  to 
commission  houses  in  New  York,  Newark,  and  elsewhere. 

Less  than  10  percent  of  the  correspondence  has  been  selected.  The 
selected  items  include  letters  outlining  policy  on  pricing,  billing,  and  routing. 
Also  selected  are  samples  of  letters  sent  in  response  to  inquiries  from  potential 
customers.  The  items  not  selected  consist  primarily  of  letters  acknowledging 
orders  and  shipments;  and  letters  of  transmittal  or  referral  sent  in  response  to 
inquiries  by  potential  customers  or  agents. 

The  letterbooks  can  be  found  in  the  Edison  National  Historic  Site 
archives  in  the  Records  of  Thomas  A.  Edison,  Inc.  A  finding  aid  is  available. 
Correspondence  to  and  from  the  Foreign  Department  can  also  be  found  in  the 
Document  File. 

Foreign  Department  Letterbook  #1 

This  letterbook  covers  the  period  May  19-29, 1908.  It  contains  copies  of  correspondence 
generated  by  Walter  Stevens,  manager  of  the  Foreign  Department.  Among  the  correspondents 
are  Thomas  J.  Kennedy,  resident  manager  of  the  Compania  Edison  Hispano  Americana  in 
Buenos  Aires;  Rafael  Cabanas  and  L.  L.  Lewis  of  the  Mexican  National  Phonograph  Co.  in  Mexico 
City;  and  William  W.  Wyper  of  the  National  Phonograph  Co.  of  Australia,  Ltd.,  in  Sydney.  Also 
included  are  letters  to  customers  and  agents  in  Africa,  Asia,  South  America,  Europe,  and  the 
Caribbean,  as  well  as  to  commission  houses  in  New  York,  Newark,  and  elsewhere.  Many  of  the 
letters  are  in  response  to  inquiries  about  the  cost  and  supply  of  phonographs,  sound  recordings, 
films,  projectors,  numbering  machines,  and  other  Edison  products.  There  are  also  letters  regarding 
the  importation  of  stearin  and  other  ingredients  for  phonograph  records,  the  price  and  discount 
structures  available  to  Edison  companies  and  agents,  economic  conditions,  and  the  idiosyncracies 
of  individual  markets.  Also  included  are  numerous  routine  letters  acknowledging  orders  and 
shipments.  Some  of  the  letters  are  in  Spanish  and  French. 

Foreign  Department  Letterbook  #2 

This  letterbook  covers  the  period  January  5-14,1 909.  It  contains  copies  of  correspondence 
generated  by  and  for  Walter  Stevens,  manager  of  the  Foreign  Department.  Among  the 
correspondents  are  Thomas  J.  Kennedy,  resident  manager  of  the  Compania  Edison  Hispano 
Americana  in  Buenos  Aires;  L.  L.  Lewis  of  the  Mexican  National  Phonograph  Co.  in  Mexico  City; 
and  William  W.  Wyper  of  the  National  Phonograph  Co.  of  Australia,  Ltd.,  in  Sydney.  Also  included 
are  letters  to  customers  and  agents  in  Africa,  Asia,  South  America,  Europe,  and  the  Caribbean, 
as  well  as  to  commission  houses  in  New  York,  Newark,  and  elsewhere.  Many  of  the  letters  are  in 
response  to  inquiries  about  the  cost  and  supply  of  phonographs,  sound  recordings,  films, 
projectors,  numbering  machines,  and  other  Edison  products.  There  is  also  correspondence 
regarding  the  importation  of  mineral  wax  and  diamonds  for  phonograph  records  and  phonographs; 
the  price  and  discount  structures  available  to  Edison  companies  and  agents;  and  business 
conditions  in  Mexico  and  Argentina.  One  of  the  letters  to  Kennedy  contains  comments  on  all  of 
the  business  structures  attempted  by  NPCo  in  its  pursuit  of  foreign  markets.  Also  included  are 
numerous  routine  letters  acknowledging  orders  and  shipments.  Some  of  the  letters  are  in  Spanish 
and  French. 

Foreign  Department  Letterbook  #3 

This  letterbook  covers  the  period  March  16-23, 1909.  It  contains  copies  of  correspondence 
generated  by  and  for  Walter  Stevens,  manager  of  the  Foreign  Department.  Among  the 
correspondents  are  George  M.  Nisbett  and  L.  L.  Lewis  of  the  Mexican  National  Phonograph  Co. 
in  Mexico  City;  and  William  W.  Wyper  of  the  National  Phonograph  Co.  of  Australia,  Ltd.,  in 
Sydney.  Also  included  are  letters  to  customers  and  agents  in  Africa,  Asia,  South  America,  Europe, 
and  the  Caribbean,  as  well  as  to  commission  houses  in  New  York,  Newark,  and  elsewhere.  Many 
of  the  letters  are  in  response  to  inquiries  about  the  cost  and  supply  of  phonographs,  sound 
recordings,  films,  projectors,  numbering  machines  and  other  Edison  products.  There  are  also 
letters  regarding  indigenous-language  recordings,  national  and  international  tastes  in  music,  and 
the  need  for  fire  precautions  in  motion  picture  exhibition  houses  in  Mexico.  One  letter  requests  a 
sample  of  Australian  bitumen  for  Edison.  Also  included  are  numerous  routine  letters 
acknowledging  orders  and  shipments.  Some  of  the  letters  are  in  Spanish,  German,  and  French. 

Foreign  Department  Letterbook  #4 

This  letterbook  covers  the  period  September  1910-March  1911.  It  contains  copies  of 
correspondence  generated  by  Walter  Stevens,  manager  of  the  Foreign  Department,  and  by  Louis 
Reichert,  his  assistant  manager.  Among  the  correspondents  are  Thomas  J.  Kennedy,  resident 
manager  of  the  Compania  Edison  Hispano  Americana  in  Buenos  Aires,  and  William  G.  Bee, 
manager  of  sales  for  the  Edison  Storage  Battery  Co.  Also  included  are  letters  to  Agar,  Cross  & 
Co.  in  Argentina;  W.  R.  Grace  &  Co.  in  Peru;  and  other  potential  agents  and  customers  in  Africa, 
Asia,  South  America,  Europe,  and  the  Caribbean.  Except  for  one  letter  relating  to  kinetoscope 
motors,  all  of  the  correspondence  pertains  to  the  sale  of  Edison  storage  batteries.  Included  are 
letters  introducing  the  product  line,  acknowledging  or  checking  on  orders,  and  responding  to 
inquiries.  Some  of  the  letters  contain  references  to  the  Lansden  Co.,  Anderson  Carriage  Co.,  and 
S.  R.  Bailey  &  Co.,  which  used  Edison  storage  batteries  in  their  electric  vehicles.  There  are  also 
references  to  the  Federal  Storage  Battery  Car  Co.  and  Electric  Omnibus  and  Truck  Co., 
manufacturers  of  trolleys  and  omnibuses,  and  to  the  Electric  Launch  Co.,  which  manufactured 
motor  boats  equipped  with  Edison  storage  batteries.  Some  of  the  letters  are  in  Spanish,  German, 
and  French. 

National  Phonograph  Company  Records 
Foreign  Department  Letterbook  #1 

This  letterbook  covers  the  period  May  1 9-29, 1 908.  It  contains  copies  of 
correspondence  generated  by  Walter  Stevens,  manager  of  the  Foreign 
Department.  Among  the  correspondents  are  Thomas  J.  Kennedy,  resident 
manager  of  the  Compania  Edison  Hispano  Americana  in  Buenos  Aires;  Rafael 
Cabanas  and  L.  L.  Lewis  of  the  Mexican  National  Phonograph  Co.  in  Mexico 
City;  and  William  W.  Wyperofthe  National  Phonograph  Co.  of  Australia,  Ltd.,  in 
Sydney.  Also  included  are  letters  to  customers  and  agents  in  Africa,  Asia,  South 
America,  Europe,  and  the  Caribbean,  as  well  as  to  commission  houses  in  New 
York,  Newark,  and  elsewhere.  Many  of  the  letters  are  in  response  to  inquiries 
about  the  costand  supply  of  phonographs,  sound  recordings,  films,  projectors, 
numbering  machines,  and  other  Edison  products.  There  are  also  letters 
regarding  the  importation  of  stearin  and  other  ingredients  for  phonograph 
records,  the  price  and  discount  structures  available  to  Edison  companies  and 
agents,  economic  conditions,  and  the  idiosyncracies  of  individual  markets.  Also 
included  are  numerous  routine  letters  acknowledging  orders  and  shipments. 
Some  of  the  letters  are  in  Spanish  and  French.  The  book  contains  499  numbered 
pages  and  an  index.  Less  than  10  percent  of  the  book  has  been  selected. 

Hr.  L.  L.  lewis,  Manager, 

Mexican  iTatloml  Phonograph  Co 
'Mexico,  B.  P. ,  Hex, 

Bear  Sir:- 

With  further  reference  to  your  favor  of  May  12th,,  I 
note  that  some  of  your  people  are  objecting  very  strenonsly  to 
ycnr  request  that  oadh  payment  be  made  for  goods  ordered* 

Confirming  conversation  had  with  you  covering  this 
-'sstter,  it  is  barely  possible  that  you  may  find  it  necessary  to. 
mcdtl^r,  somewhat,  this  rule.  Take  for  instance  people  in  Mexico 
■Gity,  you  will  undoubtedly  find  people  there'  who  have  a  large 
working  capital  and  who  are  perfectly  reliable.  In  this  event  I 
can  see  no  objection  to  your  granting  them  30  days  time,  or  :  * 
making  this  a  little  bit  more  flexible  and  grant  them;  a  few  days 
■extension  if  necessary.  The  idea  is  simply  this;  we  want  our 
accounts  to  be  absolutely  good,  if  there  is  the  slightest  doubt 
About  the  stability  of  the  concern,  then  I  would  insist  on  cash 
with  the  order,, 

It  is  noticed  of  course,  that  in  every  case  where  cash 
»«*  accompanies  the  order,  the  part y  ia  entitle d  to  the  3*  cash 
^aacount,  and,  I  think  it  will  be  advisable  for  y„u  oai  th. 


attention  of  your  people  to  the  fact  that  it  will  bt1  to  their 
advantage  to  avail  themselves  of  this  cash  discount#  Mow  some  hill 
go  beyond  the  10  days  period  and  while  we  adhere  strictly  to  the 
10  dayB  period,  yet  we  find  it  necessary,  at  times  to  stretch  a 
:  point  and  if  payment  is  received  a  few  days  after  this  period,  we 
simply  call  the  attention  of  these  people  to  the  fact  *hat  the  cash 
discount  period  has  erpiredand  we  find,  that  a  rule,  this  works 
out  well.  You  will  find  it  impossible  to  adhere  to  a  strict 
rule  in  connection  with  this  matter  and  it  is  simply  a  met  ter  of 
scxercising  ycuar  own  good  judgment  in  matters  of  this  hind 

When  issuing  instruction^  to  your  hook-keeper  that 
dash  discounts  only  apply  on  accounts  paid  in  10  clays .  he  should 
s  he  instructed  to  apply  to  you  for  instructions  regarding:  the 
matter  of  whether  to  allow  discounts  when  the  10  days  have  been, 
exceeded.  In  matter  of  this  kind  it  should  he  called  to  your 
attention  and  you  should  use  your  own  judgment. 

The  case  might  arise  where  a  very  small  account  nas  dm# 
and  in  a  few  days  a  large  account  would  he  due  and  the  s^fcrty 
sending  the  remittance  might  not  care  to  send  a,  reniffeince  for  the 
small  hill  hut  wouT£  include  same  with  the  ncxt  remittance.  In 
this  event  ca8h  discount  period  might  have  been  exceeded  on 

"the  sm?3.-i  aCcouot  and  undj&r  the  circumBtanc'a»t  provided  the 
*f\tvilege  is  not  £,u8ed  the  cash  discount  might,  he  allowed 
It  is  a  fact  that  many  of  on*  best  houses  in- this 
counts  do  this  and  it  is  Mr,  Boot’s  custom  when  this  is  done 

iM  inraxiatocly  bring  the  matter  to  my  attention  and  I  advlee 
him  what  course'  to  pursue* 

Yours  very  truly* 

Manager  Foreign  Department, 


May  20th,  1308„ 

Ur.  Teijiro  Kurosawa, 

Boom  504, 

Hotel  Umpire, 

63rd  St. ,  City. 

Hear  Sir 

Inferring  to  the  conversation  we  had  with  you,  relative 
to  the  matter  of  granting  you  increased  discounts  on  Bates 
Numbering  Machines,  for  sale  in  Japan. 

I  Have  considered  this  matter  very  carefhlly ,  and  in  view 
of  the  fact  that  you  agree  to  give  us  an  order  for  SO  Bates 
numbering  Machines,  we  will  grant  you  on  that  and  all  succeeding 
orders,  a  45j£  discount  from  the  list  x>ricee,  plus  an  additional 

for  cash.  This  is  an  increase  of  5#  above  the  discounts  we  have 
heretofore  allowed  you,  and  we  might  here  state  for  your  information, 
that  you  are  the  only  client  of  ours  to  whom  these  quotations  have 
been  made,  notwithstanding  the  fact  that  we  have  business  houses 
Who  are  placing  very  large  ordors  with  us.  We  grant  you  this 
concession  in  view  of  the  fact  that  you  are  advertising  extensively 
these  machines  in  your  territory  and  ere  using  svefy  endeavor  to 
increase  the  sale  of  same. 

the  success  of  your 

Me  wish  to- congratulate  you  on 
business,  and  assure  you  that  we  appreciate  the  favors  you  have 
bestowed  upon-™  .m  the  past.  We  have  no  douht  that  your  husinest 
will  continue  to  increase  in  a  satisfactory  manner. 

Va  -may  also  state  that  these  discounts  will  apply  on  all 
orders  you  may  send  to  us,  provided  each  order  comprises-  at  least 
60  Bates  numbering  Machines. 

Trusting  this  arrangement  will  prove  satisfactory  to  you 
and  hoping  to  have  the  pleasure  of  again  meeting  you  before  you 
leave  the  city,  we  beg  to  remain, 

Yours  very  truly, 

Manager,  Foreign  Department. 

May  21,  190®. 


Hr.  Alex  T.  Moore,  Mgr.  Kinetograph  Dept., 

Edison  Manufacturing  Co., 

Orange,  N.  j, 

n»ar  Sirs  - 

I  tor.  your  ci.«>ta,  l,tt„  of  a,  lla, 

^  ~~  *■ 

f ;  IT T“' w  *—> « *  -  n0t. 



~ ZZ ZT  *'  reh7 oai  yo"  - «-  *•* 

0h  as  you  allow  W  to  dealera,  it 
*»■  «.  t.  do  m.  onl  ’  ”111  ‘e 

as  our  profit.  This  is  *  ****  US  Wlth  a  discount 

- «.  :: z r\prom>  - 1 

-™  ~W  Urt,'  ”  ”  b*al“  "  * 

««« wz  zzzri  yT  ™y  oi*“  *°  *3io*,”s  “■  «*. 

Hay  21,  1908k 

\  1 

Hr.  W.  S.  Gilmore,  President  &  Oeni.  Hgr. , 

Hdison  Buain»BB  Phonograph  <Jp, , 

Orange,  H, 

Dear  Sirs* 

This  letter  ia  written  simply  to  you  about 

going  into  the  matter  of  granting  us  50#  discount  on  Baoinee* 
Phonographs,  instead  of  40j£  which  we  are  now  enjoying  ^  '*lich 
you  allow  to  dealer*  in  this  country. 

Yours  very  truly* 

Manager  Poreian  Depafctnrento 

W.  S./F.EoMo 

We  beg  to  acknowledge  receipt  of  your  esteemed  favor  of 
the  loth  ult.,  wherein  you  enclose  an  order  for  a  phonography  records 
and  repair  parts  and  accessories. 

The  order  will  he  immediately  entered  and  shipped  sight  draft 
against  hill  of  lading.  With  the  shipment  we  will  include  a  full 
supply  of  catalogues  and  posters,  for  advertising. 

We  duly  note  your  enquiry  with  regard  to  the  products  of  the 
Edison  and  Bates  Manufacturing- Companies. 

The  Edison  Mfg.  ce.  is  now  marketing  kinetoscopes,,  films,  Bat¬ 
tery  Pan  Motor  outfits,  cfells,  and  renewals.  The  Bates  Go.  d*als 
exclusively  in  numbering  Machines. 

We  now  list  four  different  fcihetoscopes,  ranging  in  price  from 
to  $17 5.00 .These  are  all  fitted  to  be  operated  with  light 
*y  slsstric  current,  either  direct  or  alternate,  b^twhen 
electricity  is  not  available  for  light,  we  recommend  tb/a  use  of 
our  Qxyllth  gae  outfit  ,  of  which  you  will  find  an  interesting 
description  ir.  the  catalog. 

Oar  film  is  now  listed  at  $.Q8— l/fe  per  foot  for  export  and 
oar  list  of  films  1b  already  large  and  constantly  being  added  to. 

The  other  products  of  the  Edison  Mfg.  Co.,  such  as  Primary 
Batteries  are  all  of  such,  quality  as  would  be  expected  to  belong  to 
all  electrical  apparatus  devised  arid  perfected  by  the  greatest  elec^- 
trician  of  the  age. 

On  all  the  products  of  the  above  companies,  you,  a3  a  dealer, 
will  be  entitled  to  the  discounts  shown  on  the  enclosed  list. 

On  Bates  numbering  machines,  we  beg  to  quote  you  further  dis¬ 
counts,  as  follows: 

On  orders  amounting  to: 

§75.00 - 

§185.00— - - 

§375  .00 - - 

§750.00-—— - 

Regular  dealer* s 

— - 33-1/V  & 

- - 33-1/5  &  lQ5f 

- 33-1/3  &  1(M  ana  2-1/3^ 

- - 33-1/3  &  yte  a  ig£ 

discount  33-l/p 

We  judge  from  your  order  that  you  have  not  been  supplied 
with  a  set  of  our  order  blanks,  arid  under  separate  cover „  we  are 
sending  you  a  book  of  order  blanks  and  record  order  sheets. 

Thanking  you  for  your  kind  order,  and  awaiting  your  further 
favors,  we  beg  to  remain „ 

Yours  very  truly,, 

Manager,  Eoreign  pepartment, 


Hay  21st ,  1908, 

Messrs  T  Harayan  ft  Bros. 
Madras,,  India. 

which  have  had 

"  h*v”  15ts  „t„  tta  0;nteots  or 

r  careful  attention. 

implying  ,1th  your  request,,  ».  t.t.  ^ 

1"“  *  O0"tl*‘o  *•*  of  our  eut.ieguee,  v®ioh  yi. 

■there  you  „lx  rlnJ  d.soriptire  of  th8  ^.rolel' 

ffiretem  conducted  wth^the  Business  phonograph". 

*  tote  the.  y.ri.nelaering  up  tll.  eal,  ths  putnt 

•eother  houee  and  we  ere  glad  indeed  to  her.  the  opportunity  ,f 
'  ””  br°“Sht  *»*«  oo»p«-i..„  with  it.  ».  1S05  ^ 

*  °r  th*  »o»*«"0h  Ju.lnes.  phonograph  and  .,„o. -that  tl.e 

«r.  iidinon  h«.  devoted  .cider.**.  ti*.  to  looting  it,.  „a 
..Believe  th.t  »,  no.  in  .  p.ol«h»  to  .rfer  „„  tpth  .  turn 

::r:r  **~r-  ** .  „ 

ue  .11  rind  it  an  essential  part  of  their  office  equip.** 
one  ehioh  they  cannot  .fiord,  to  dispone.  Mth.  .  llta. 

-  *•  >•  *«.  ««  «.  a-t’J.V^T 

«.rey  to  n°“t'  tZZ'J’T  01  °“r  *"d  hl* 

•IT  —  ..  *,,*  ,ua  .  ~  ■  "  “t'r  W'  «“ 

^ *  -  «*. * hou"  °f  -  ** — 

** '  *  ' t  “*  *“"•  th“  -  «»  ««*  ....  -or.  ooapra- 

: ym  th“ o” —  *■  «■«  ^  ^ 
ooTO„ywrr  ”ry  '“■8r,,iir  ■■*  r°rth-  T°u  '’iu  **>«  - 

iHT  “  “  *  “**  “d — *.«** 

1  ll  ”**  ’  °f  ■  “ .. «  ««««, 

.11  ‘  ror  — ~  «—~. 

!“  ^  *»»«-.  -  —.or  mhl, 

.■*?•  “•  ^  ov*ro°“  *  «-»*•  to  «,.  « 

rind  °r  detallS  aS  t0  the  Vari0U8  PartS  0f  th4  0Utfit*  you 

find  carefully  delineated  on  the  follow!  '...., 

^ page  u,  you  wm  8ee  the  ffl  i  °:  °r  ree  °f  *•  i> 

.....  .. .  _  jrrrrr^:. 

n::  :::t °f  -  —  -  * — 

«ntl.  onto,  Mth  ”  0.0.™.., d  th.  puroh...  or  » 

tit.  „ur  ’  .optooto  machii,..  ror  transcribing  Mid  dicta-  5 

oorretst  ^  ^  ~  -  ' 

7/e  t  .  necessary  adject  to  the  outfit? 

-  ~r::"  r::rrr*iw“ ~  - 

better  sell  an  "^SO^  business  outfit  than  Z\ZrT 

ve  .  x  “  °rder  ^  tW°  6a0h'  “•***«  arid  transcribing  outfits 

anoth  r  c  #  ^  *  *11°W  *  diBC0Unt  °f  ^  *  **fc.  that 

another-  cow  ia  offering  you  .  larger  * 

connection,  we  can  «>  this 

*  y  eay,  that  whatever  the  discount  offered  you. 

it  will  pay  you  to  have  the  best  outfit.  That  insane  that  you  must 
have  the  "EDI SON "  .  You  know  the  old  addage  about  the  ’'’nimble  six¬ 
pence".  Inasmuch  as  our  outfits  are  superior  to  any  others,  you 
will  sell  more  of  thejnj  your  sales  will  grow  as  the  same  becomes 
better  known,  until*  finally,  the  smaller  discount  will  aggregate 
you  more  money  ,  than  the  larger .  . 

,,  ,  We  judge  that  you  are  not  interested  in  our  ojther  manufactures,, 
but,,  we  may  say  in  passing  that  if  you  should,  care  to'  consider  the 
salgP  of  our  amusement  phonograph,,  upon  receipt  of  your  order  for 
thj^ee  machines  and  150  records,  we  shall  be  glad  to  accord  you  the 
large  discounts  :ihownon  the  enclosed  discount  sheet. 

Pr ices  ,  The  Business  ptfcmagraph  outfit  and  accessories  are 
sold  in  this  country  in  accordance  with  the  prices  shown  on  the 
3^at  page  of  the  catalogue,,  and  these  will  be  list  prices  to  yon*-. 
■.The  prices  of  our  Amusement  records,  for  export  to  your  country* 
are  now*  $.25  each  list  for  other  than  Grand  Opera  and  "Concert" 
.^corde,  which  are  $.75  list. 

..,  Our-  terms  are  cash  with  order,,  or  if  your  prefer,  you  may  send 
,HB  5 of  the  amount  of  your  order  and  for  the  balance  we  will 
draw  sight  draft  against  bill  of  lading.  We  deliver  all  goods,  free 
•  rpn  board  vessel,  this  port,  arid  we  make  no  charge  for  packing. 

Thanking  you  for  your  kind  enquiry  and  hoping  to  be  favored 
with,  an  initial  order,,  we  beg  to  remain,  gentlemen. 

Yours  very  truly,, 

Gr.  Manager,  foreign  Department. 

May  22 t  l$06c 

m  ,n- 

lU  edT  J 


Mr.  X,  X0  Xewia,  Manager  # 

Mexican  Matioml  Fhono graph  Co. , 

Mexico.  D.  F. ,  Moxo 

l%ar  Sirs- 

I  enclose  herewith  a  communication  from  Mr.  Xus. 

Khhn,  of  Ind£  ,  Xgc. ,  Mexico. 

3naer  date  of  April  29ths  we  referred  Mr.  f£uhn*e  original 
communication  to  yon,  and  hy  referring  to  this  present  letter, 
you  will  note  that  he  complains  that  his  inquiry  was  referred  to  a 
dealer  in  an  out  of  the  way  place,  and  no  reply  was  given  his 
inquiry,  and  also  that  the  letter  of  acknowledgement  wan  writ  tea 
ifc  Spanish. 

*  ,a°  not  toow  what  your  custom  is  so  far  as  inquiries 
*ra  concerned,  hut  it  appears  to  me  to  he  very  unwise  to  refer 
inquiries-  to  dealers  unless  the  inquiry  comes  from  same  city  in 
*hich  the  dealer  is  located  ,  In  handling  our  inquiries,  we 
never  refer  an  application  to  a  dealer  doing  h^Inesa  in  another 
It  is  entirely  different  with  a  joh-ar,  as  a  johher,  as  a 
rale  is  alive- to  the  possibility  of  obtain^  Good  business  and  win 
follow  up  inquiries  carefully,  hut  it  i,  pot  alwaye  ,0  with  dealers. 



particularly  in  foreign  sountrieao 

This  particular  dealer  that  this  party  refers  to,  liv*s, 
as  h©  says,  100  miles  from  the  Railroad  and  it  is  very  evident  tb&t 
that, particular  dealer  in  not  in  a  position  to  look  after  this  man*3 
'o’isinBBSo. . 

Then  again,  in  view  of  the  fact  that  this  particular 
applicant  is  an  Jtaeriears,  it  would  seem  to  mi  that  this  particular 
inquiry  could  he  handled  much  hotter  from  your  officer 

How,  with  further  reference  to ■inquiries  you  receive, 

I  really  heieve  it  would  work  out  to  your  advantage  to  answer 
inquiries  of  this  kina,  and  for  you  to  solicit  the  business,  direct, 
unless,  as  previously  stated,,  you  have  a  good  live  dealer  in  -tfcd 
city  from  which  the  inquiry  is  received* 

Will  you  kindly.  Immediately  reply  to  this  letter  as  you  will 
not*  that  Kr.  Kahn  expects  to  return  to  Kansas  City  in  June* 

Yours  very  truly, 

Manager  Joraign  Department* 




L,  yj 

Mr.  Thomas  Graf,  Managing  director, 
national  Phonograph  Co.  Ltd. 

Willesden,  London,  N.W.  England. 

Our  President,  Mr.  Gilmore,  has  handed  me  for  at¬ 
tention  and  reply,  your  letter  dated  April  the  4th„  answering  hlB 
letter  of  March  the  17th,  having  reference  to  Messrs.  Murdock  &  CTi 
Ltd.,  of  London,  doing  business  in  territory  assigned  to  our  Aus- 

Our  Mr  •  Wyper  has  complained  at  different  times,  that  Messrs 
Murdock  and  Co.  were  shipping  goods  Into  hiB  territory.  In  a  letter 
just  received  from  Mr.  Ylyper,  ]e  v/rites: 

"Vie  are  pleased  to  note  that  you  intend  coramunic ating  with  Mr. 

Graf,  drawing -his  attention  to  the  report  I  made  you,  covering 
Messrs  Murdock  ft  Co  .  '  s  dealing  in  Hew  Zealand,  and  I  sincerely 
trust  that  such  proceedings  will  be  stopped.  It,  as  you  can  quite 
understand,  naturally  tends  to  upset  our  business  relations 
here" . 

You  car,,  I  am  sure,  appreciate  that  this  is  a  serious  matter, 
as  Mr.  71/per  finds  it  impossible  to  properly  enforce  his  agreements, 
so  long  aB  other  parties  are  shipping  gOodB  into  his  territory.  i 

The  "Foreign  department  has  also  been  annoyed  by  receiving  re-  iJB 

porta  from  "both  South  Africa  -and  India,  that  Murdock  ft  Cto.  were 
Shipping  goods  into  that  territory. 

Mr.  Gilmore  -wishes  you  to  confer  with  Messrs  Murdock  ft  Co. 
insist  on  their  discontinuing  hueinoss  outside  of  Great  Britain, 
per  the  termB  of  their  agreement. 

Trusting  that  you  will  give  this  matter  your  kind  attention, 
I  remain, 

Yours  very  truly, 

Manager,  -rjoreign  Bepartment. 


A  copy  of  thie  letter  also  sent  to 

Gentlemens - 

Our  faotory  haw  in  preparation,  and  they  are  «rezy 

endeavor,  to  plaee  on  the  market,  on  or  about  September  let,  *  new 

Thio  Record,  1  believe,  will  he  called  *AHB1RQI£» ,  to 
distlnguloh  it  from  Our  regular  standard  two  minute  Record.  This 
Record  will  contain  practically  double  the  amount  or  matter  engraved 
<m  the  preeent  type  0f  standard  Record,  and  there  i.  no  doubt  that 
eventually  it  will  supersede  the  present  standard  Record. 

n»  *.o„M  i.  «*  mm  „u„.  ana  M  on  m  iw_ 

lar  type  machines ,  the  difference  being  a  finer  thread  used  on  the 
main  Shaft . 

On  account  of  the  length  of  time  this  Record  will  run,  it 
*  U  prove  a  strong  Goapetitor  of  the  larger  disc  Records,  and  wwa- 
ttfajly  our  People  estpaob  to  have  a  good  supply  of  fin#  Grand 
Rsoor^s;  but  t^S  must  n,o#eoari^  follow  *fte*  our  *ore  popular 
•asutloes  as  Sands,  Orshsstrs*  and  Tossl  selections  «f  eii 

kinds)  are  made. 

As  soma  considerable  time  mast  necessarily  elapse  before 
tbs  trade  in  this  country  oan  ho  taken  care  of,  we  will  do  no  tiling 
whatever  about  arranging  to  supply  the  foreign  trade  with  these 
Beoords  at  the  present  time. 

an  saw  machines  manufactured  for  use  in  this  country  af¬ 
ter  September  1st  will  be  *  id  Arranged  that  both  the  standard  **&- 
these  new  Records  earn  be  used*  -tbtbtk  attachments  will  also  be  sup¬ 
plied  »  which  oan  be  attached  to  the  old  type  Maohines ,  thus  making 
tt  possible  for  ary  one  having  an  old  type  machine  to  uss  both  <ha 
two-minute  and  the  four-minute  Record. 

I  will  not  go  further  into  this  matter  at  ths  preesnt 
time »  but  we  expect  in  the  very  near  future  to  have  a  line  «f  print¬ 
ed  matter  descriptive  of  the  new  Record,  and  Just  as  soon  •*  *fci» 
is  received,  X  will  forward  same  to  you. 

The  list  price  of  this  new  Record  will  be  Bfltf ,  ss  agaiss*' 
Stff  for  the  standard  else. 

Youro  very  truly. 

V*  s< 

Manager  foreign  Department. 

Mr.  W.  W.  Wyper,  Manager, 

Rati.  Phono.  Co.  of  Australia,  ltd., 

Sydney,  1J.  S.  W, 

Pear  Sir:- 

In  your  recent  communication  you  advised  us  that  you 
had  received  requests  from  your  clients,  from  time  to  time,  asking 
that  the  name  of  each  record  selection  be  printed  on  the  label 
which  is  attached  to  the  cover  of  the  Record  carton. 

This  matter  was  taken  up  with  our  Mr.  Wilson  and  I  enclose 
copy  of  his  letter  which  I  think  you  will  find  fully  explanatory. 
With  reference  to  the  third  paragraph  of  this  letter,  would  state 
that  our  factoi’y  expect  to  place  on  the  market,  on  or  about  Septem¬ 
ber  1st,  a  new  record  which  will  contain  about  double  the  matter 
that  is  now  recorded  on  our  Standard  records.  This  record  will 
run  approximately  four  minutes  and  they  hope  to  have  about  100 
selections  ready  for  distribution  about  September  1st.  These 
records  will  only  be  sold  or  distributed  in  this  country,  as  it 
will  be  impossible  to  provide  for  the  requirements  of  our  foreign' 
trade  ,  Undoubtedly  gome  time  will  elapse  before  we  will  be  in 
a  position  to  supply  these  for  foreign  trade, 

Just  as  soon  as  I 

C“  °btairj  SfWipl6B  1  w111  Upward  Bane  to  you  and  I  wEU  at  that 
time  write  you  very  fully  in  regard  to  these  new  records'. 

We  expect  these  new  records  will  prove  a  *yeat  stimulant 
to  the  sale  of  talking  machine  records  and  we  expect  that  all 

machines  for  distribution  in  this  country  on  and  after  September 
1st,  will  be  equipped  so  that  both  the  old  style  and  the  four  minute 
record  can  be  used  on  the  machine.  An  extra  adjustment  will 
also  be  supplied  which  can  be  adapted  to  the  old  style  machine. 

Just  as  soon  as  we  are  in  a  position  to  supply  .these 
new  records  and  machines  for  foreign  distribution,  I  will  advise 
yow  giving  you  full  information,  and,  just  as  soon  as  the  new 
literature  is  issued  covering  same,  I  will  forward  copies  to  yo^ 
Yours  very  truly, 

Manager  jo  reign  Department. 



Mr.  T  .  J  .Kennedy  i  Resident  Manager, 
c£a.  Bdison  HI apano -Americana , 

Buenos  AireB,  R.A. 

Dear  Sir:-  _  <- 

I  beg  to  acknowledge  receipt  of  your  favor  of  April  3  th, 
in  which  you  acknowledge  ours  of  February  24th  and  25th  and  March 
2nd,  calling  attention  to  the  fact  that  we  misunderstood  y«ur  letter 
having  reference  to  the  change  in  prioe  of  the  mechanism  -of  the  •Uni¬ 
versal  Kinetosoope.  ' 

In  yours  of  January  30th,  you  mention  the  "increase  bn 
price  of  the  mechanism,  and  the  decrease  in  price  of  blank  films". 

I  am  sure,  however,  that  the  matter  referred  to  is  perfectly  under¬ 
stood,  and  no  further  comments  are  necessary. 

TmrmtsTAH  3HIRM8RT: 

I  regret  to  learn  that  the  Cabinets  and  "Truatone"  Horns 
were  received  in  a  damaged  condition,  and  I  will  endeavor  to  have 
the  parts  of  the  Cabinets  supplied,  and  also  have  the  two  Horns 
furnished  by  the  Manufacturer  "no  Oharas’*,  and  IS  auo«aaaful,  will 
include  same  in  your  next  shipment . 


I  am  glad  to  know  that  the  cabinet  a  were  acceptable,  to 
you,  and  trust  you  will  be  in  a  position  "to  do  some  business  with 

CRI  011.0  RECORDS : 

I  note  that  you  received,  some  days  prior  to  .the  flat e  af 
your  letter ,  the  documents  covering  the  ..part  shipment  of  the  Grato- 
llo  Records  and  1+Q.8*  Outfits.  I  note  you  were  surprised  at  .only 
receiving  1500  Crlollo  Records  on  that  particular  steamer,  and  in 
this  connection  would  state  that  when  this  initial  shipment  of  Re¬ 
cords  was  made ,  in  notifying  you  of  aama ,  -owe  shipping  clerk  ohna’ilai 
have  given  you  full  particulars,  hut  this  he  advisee  ms ,  he '-smiter— 
stood  was  to  he  mads  the  subject  <of  another  letter.  Stas  truth  <bHT 
it  is  that  it  waB  impossible  for  us  to  get  the  full  number  of  Crlo- 
llo  ReoordB  off  on  this  steamer,  and  as  I  knew  you  were  very  orach  in 
need  of  same ,  my  instructions  were  to  make  .part  shipment;  but  .when 
you  received  notice  . of  this  shipment  you  should  also '.have  received 
notice  that  it  was  a  part  shipment,  and  the  balance  of  Ithe  order 
would  follow.  By  SS  " CA3I1DA" ,  sailing  March  25th,  we  marie  a  fur¬ 
ther  shipment  of  3500  Records,  completing  the  first  order  for  100 
each  of  the  50  selections  shown  on  our  first  list. 

The  second  shipment  -(B ,000) ,  were  forwarded  per  SS  "VBXJU3- 
QUEZ",  May  20th,  and  the  supplements  for  tills  list;  were  shipped  per 
S3  "VERDB"  April  16th. 

The  third  list  we  expect  to  ship  in  August,  arti.  the  4th  in 


If  you  desire  the  entire  list  completed  irawsSta tely ,  kind- 

ly  adviue  ua  fully,  X  might  state,  however ,  that  X  question  vary 
much  whether  we  could  complete  the  entire  list  .at  an  early  date,  -on 
account  of  the  enormous  amount  of  work  the  factory  have  an  hand  at 
the  present  time.  Ho  .doubt  it  seems  to  you,  as  it  does  to  me,  that 
a  long  time  elapsed  before  these  Records  were  ready  for  shipment ,  ifcttt 
1  should  state  that  the  foroe  of  men  at  the  fa.cfcoty  manufacture  cttfee 
moulds  is  simply  overwhelmed  with  work;  their  regular  monthly  alwmfc- 
con  list  of  24  Records  eaoh,  must  be  gotten  out;  tUaen  wre  have  cnur 
Mexican,  Cuban,  Argentine  and  foreign  lists  to  'get  out,,  tbs  msg/ 
ing  about  the  extra  effort  our  people  aie  making  to  get  out  «  new  • 
Record  for  use  in  this  country  (and  also,  eventually,  for  use  in 'the 
foreign  field )  about  which  1  shall  write  you  under  separate  -cover. 
While  their  facilities  for  making  the a a  moulds  are  ample  for  meeting 
their  requirements,  yet,  at  a  time  liks  the  present,  when  so  many  ex¬ 
tra  things  are  coming  out ,  they  are  simply  swamped  with  wm&, 

Haturally ,  one  might  think  that  under  the  circumstances 
our  people  should  increase  their  facilities,  but  when  ms  .consider 
that  the  parties  doing  this  work  must  be  experts  in  their  line,  «* 
these  people  cannot  be  picked  up  everywhere,  it  siupiy  matt*  that 
they  must  do  the  best  they  can,  even  if  the  trade  in  a  measure, 
buffers , 


I  am  very  glad  to  know  that  your  action  in  Meeting  Mr.. 

Tagini * s  advertisement  Bliaon  Bernards  **  the  desired  effect. 

X  regret  that  you  were  somewhat  disappointed  that  your 

action  in  meeting  this  act  did  not  meet  with  .our  approval.  I  am 
sorry  1  gave  you  this  impression*  when  .1  referred  to  the  established 
rules  of  the  Company ,  hut  right  her®  I  wish  to  -State  that  we  appre¬ 
ciate  fully  your  position*  and  we  have  the  utmost  confidence  in  your 
ability  tp  meet  Just  such  an  issue  as  that  presented  by  Tasini1*? 
action  in  cutting  the  price  of  our  Records.  You  ere  on  the  ground, 
and  understand  conditions  thoroughly,  which,  of  icrurse,  we  cannot 
here  in  New  YoriJc;  and  there  is  no  doubt  that  you  acted  very  wisely 
in  this  entire  matter.. 

1  am  very  glad  that  you  have  gone  into,  the  matter  -so  thor¬ 
oughly  in  your  letter.  I  appreciate  that  conditions  are  very  dif¬ 
ferent  in  Buenos  Aires  than  in  the  States;  we  can  control  the  price 
of  our  Records  here,  and  immediately  proceed  against  ary  one  cutting 
the  price,  and  we  hope  sometime  that  you  will  be  in  the  same  posi¬ 
tion;  but  for  the  present  you  have  simply  got  to  meet  conditions  as 
they  are ,  and  you  can  rest  assured  that  we  at  tttla  wad  will  do  svsxy- 
thing  in  our  power  to  assist  you. 


We  acknowledge  receipt  of  your  order  for  these  Records, 
and  we  trust  that  they  will  enjoy  a  large  Bale  in  your  territory. 

The  Records  referred  to  were  Bhipped  per  SS  *V^LASQUBZ" ,  sailing 
May  20th. 


I  regret  exceedingly  'there  was  -a  delay  on  the  part 
of  our  legal  Department  in  sending  iPawer  of  Attorney  and  License 
as  we  supposed  that  this  had  bean  fw»lara«d  promptly  to  you  by  them, 


T  »<T ,K.  ,  -{5- 

they  having  promised  to  give  the  matter  their  attention. 

The  documents  referred  to  were  mailed  kto  you  April  29th, 
and  1  trust  will  reach  you  in  time  for  your  requirements. 

We  aleo  acknowledge  receipt  of  Hot  of  sales  for  the  month 
of  March.  Statement  and  vouchers  covering  sans  have  been  re¬ 


Yours  very  «®»ily, 

Manager  foreign  Department . 

May  23rd,  1908. 


Mr. T.jT .Kennedy,  Resident  Manager, 

Cfa.  Edison  Hi  spano -Americana, 

Buenos  Aires,  R.A, 

Dear  Sir:- 

I  hay  a  your  favor  of  March  26th,  in  which  you  acknowledge 
receipt  of  oir  favors  of  February  14th  and  15th. 


I  note  that  the  advance  lists  which  were  forwarded  by 
were  received,  and  that  they  meet  with  your  approval. 

Following  your  suggestion,  we  immediately  took  up  the  nat¬ 
ter  of  having  these  supplements  Read  "CRIOiaos" ,  instead  of  "ARGKJT- 
•  and  on  the  third  and  fourth  supplements  whioh  we  are  prepar¬ 
ing,  this  change  will  be  made. 

1  npte  you  have  changed  the  price  of  the  Gem  with  new 
equipment,  in  order  to  meet  the  competition  of  other  makes.  I  al¬ 
so  note  that  you  are  considering  slightly  reduoing  the  price  of  the 
new  horns  for  the  other  machines,  thie  reduction  only  to  apply  when 
a  complete  Outfit  is  sold, 

We  can  only  confirm  what  we  previously  stated  in  connect- 


T..T.K.,  -2- 

ion  with  these  Outfits,  viz:  that  after  your  present  stock  is  «x- 
hausted,  we  think  it  would  he  undesirable  for 'you  to  -cxpend'ory  'of 
your  energy  In  advancing  the  sale  of  these  goods .  ®! ,  ^however,  ,;*jobu 

think  it  wiBe  to  keep  a  very  small  stock  ;«f  vt&s  se  «n  ;hanB ,  iwe -wfiSEi 
he  in  a  position  to  supply  same;  hut  -on  >aa count  ,of  43»e  vuesaiisfeMrt  - 
ory  treatment  we  have  received  from  *fiaase  people ,  W3“ha»s  practically 
given  up  the  eale  of  the  language  Outfit s ,  hath  in  this  of  f  ice  and 
our  foreign  branches.. 


I  am  very  glad  that  you  oould  arrange  to  'take  :thls  ^little 
trip,  and  I  feel  sure  that  if  you  can  arrange your  bttaAness  rso -that 
it  will  he  well  taken  care  of  during  your  -absence ,h; -might > he ' wall 
to  take  an  occasional  trip  to  some  of  the  -more  -important  cities  viwr 
you,  as  the  success  of  your  business  must.  An  aimeasurs-,  ^depend -upon 
the  rnanher  of  dealers  and  jobbers  you  are  able  to  establish. 

From  the  report  you  recently  forwarded  to  us ,  it  dham 
that  you  are. making  steady  progress,  and  we  feel  that  -ii .'As  swaly  a 
question  of  time  when  your  office  will  nfft  only  he  self-supporting , 
but  eventually  show  a  substantial  profit.  We  all  appreciate  that 
you  cannot  expect  to  do  an  enormous  business  at  the  start,  as  it  'was 
necessary  for  you  to  practically  re-introduce  our  goods  into  your 
territory.  I  understand  the  situation  thoroughly;  we  have  always 
refused  to  give  the  exclusive  sale  «f  our  apparatus  to  any  one  fjbb- 
ber,  and,  not  having  direct  reprexeiitatlen,  nature, lly  the  demand  for 
our  goods  was  very  small.  We  feel,  however,  that  it  will  only  be  a 

question  of  time  now,  when  we  will  be  properly  “represented,  and 



+  .  ,t  lB  therefore  perfectly  ndtur- 
demand  for  Edison  goods  created.  re^affnt«d,  «t 

„  „  +>.„  fact  that  we  were  not  prnperiy  r®*u 

al*  in  V  W  .  we  had  in  *x  measure  withdrawn  from 

people  generally  supposed  that  we  had 

the  field.  ..  t4n,ovtB  which  are  com- 

Mi>c  r°«  »•«  ‘  ,  _ 

„  ..  u„  and  .UhlM  3"~  <*  »“00"  “ 

lug  to  ua  from  time  to  tune , 

your  field,  I  remain, 

Yours  very  truly. 

w.  s. 




Manager  foreign  Department, 

Mr.  T,J,Kennedy,  Resident  Manager, 

Cfa.  Edison  Hispano-Americana, 

BuenoB  Aires,  R.A, 

Bear  Siri- 

I  have  your  favor  of  April  23rd,  confirming  yew  cubic 
vices  that  the  Power  of  Attorney  had  not  been  received. 

Aa  advised  under  separate  cover,  the  necessary  dooumetfts 
were  forwarded  to  you  by  registered  mail  April  89  th. 

I  can  readily  understand  that  you  have  been  seriously 
handicapped  on  account  of  the  delay  in  sending  these  documents,  taut 
trust  that  upon  receipt  of  same,  you  will  be  in  a  position  to  prs- 
oeed  immediately  against  any  concern  whatever  using  Mr.  Edison's 
name  without  his  authority. 

1  have  no  doubt  that  Mr.  Taglni  V/ill  do  everything , in  his 
power  te  handicap  you  in  your  work,  but  1  feel  sure  that  you  are 
capable  of  meeting  him,  and,  in  the  end,  that  you  will  succeed  in 
your  endeavors  to  bring  him  into  llne^. 


I  note  this  shipment  was  received  as  a  whole  in  good  con¬ 
dition,  with  the  exception  of  seven  Records  and  six  blanks  broken. 

B  claim  on  ^  factorj,  fbr  ^  ,rpken 

ocords .  i  also  note  that  the  Kipatoscop.e  part  forwarded  to  you 
*-ail  -3  reoeived  broken,  and  we  also  .duplicate  this  .part. 

I  have  taken  due  note  of  your -remarks  with  reference  to 
in  which  the  tPiOn  business  *fc*  -conducted,  namely,  that 
of  the  exhibitors  prefer  to  rent  their  films  rather- than  pur - 
hom  outright.  This  i8  perfectly  natural ,  .but  iXt  -  would  .-he 
u  possible  for  ^  ^  ^  0^pemion^w_^d  _ 

under  any  circumstances,  arrant 

ange  to  carry  liar ge  e^odk^  jaaama, 
and  do  a  renting  business.  I  can  i 

^  r«a-«.ly  understand  Why  aua  woi-kc 
out  to  the  advantage  of  the  Paths  penm*-  „ 

.issue  Xk&xa& 

°f  T11"  ^  "*•  ■-  -  —  —  —  ,JrTZ 

*h°ir  ^  —  •  - — 

*>  «—  *  sflISect 

“*•  »»«»«. *»  ««««.,  ,«„  « _ «. 

10  **“  »“»“  <*  ««««,„„.  . 

*  “b"  u,r-“  *■*  •»  **•**  *•«..  «»..  ».  dl.: 

*“  «■  *«H»  „» 

1>w  a,:'  *“  «“  «  »»t  W  «  *«. 

az  a  greatly  reduced  price. 

more  the  ^  ^  ^  ^  ^**»~f*  ***  that  we  have 

abl  t  "  d°UWed  °Ut^*  -»  »•«*•  ^  twelves  scarcely 

with  th  T  thB  demand  °07erlne  «*«  *>*<*  •»  Placed 

or  every  new  subject  iBBued,  They  have  no  desire  w 

T.«  j *K.  ,  -3- 

time  to  make  up  a  lot  c f  subject s,  many-  of  which  would  undoubtedly 
prove  poor  sellers,  and  hence  they  are  not  in  a  position  to  meet 
this  competition. 

Once  in  a  great  while  you  will  find  that  some  of  the  sub¬ 
jects  we  send  you  cannot  be  disposed  of.  As  we  do  not  care  to  thavs 
these  subjects  returned  to  us,  it  will  be  necessary  for  you  to  die-” 
pose  of  same,  even  if  you  are  obliged  to  slightly  reduce  the  price. 

I  trust,  however,  that  you  will  experience  no  difficulty  in  di*)p©s- 
ing  of  any  of  the  subjects  we  may  forward  to  you* 

So  far  as  making  one  of  the  conditions  of  the  lieefflase  aur- 
der  which  business  is  done  in  this  country,  that  JLn  rcntitn®  tEBastr 
71  lms  in  other  countries  they  would  not  discriminate  the 

use  of  the  Bdison  Kinetosoope,  would  state  that  the  license  referred 
to  has  nothing  whatever  to  do  with  the  sale  of  films  in  ferfelgn 
countries,  nor  can  we  expect  to  control  that  branch  of  the  business. 

I  might  state  for  your  information,  that  conditions  in 
Mexico  were  practically  the  same  as  you  f^nd  them  in  Buenos  Aires, 
but  I  am  very  glad  to  say  that  since  the  price  «T  oar  Slims  3ms  390en 
reduced ,  many  of  the  largest  exhibitors  in  Mexico  are  using  «ur 
Films  quite  freely,  which,  naturally,  has  resulted  in  largely  in¬ 
creased  sales. 


X  note  that  the  first  sampleB  of  these  Records ,  covering 
the  first  fifteen  numbers,  were  received,  and  it  ie  a  souroe  of 
great  satisfaction  to  know  that  the  FigoU  selections  are  pleasing 
to  your  people.  When  these  Records  were  records ,[ our  people  in 



the  Recording  plant  were  very  U ar/ul  that  they  would  not  prove  ac¬ 
ceptable.  Naturally ,  they  fouxld  that,  compared  with  the  Recorde 
they  were  making,  these  particular  Records  were  very  much  below  the 
standard,  but  as  I  explained  to' Mr.  Miller,  at  the  time,  that,  while 
these  Recorde  appeared , defective  and  very  poor  from  a  . musical  stand¬ 
point ,  yet  I  was  sure  that  thifc  particular  c3*ss  of  Records  Would 
easily  pass  muster  in  your  country. 

Some  of  the  Mexican  Records  that  were  taken  were  Very  or¬ 
dinary,  -  in  fact,  it  seemed  we  were  baiMtgr  Justified  in  putting 
them, out.,  but  notwithstanding  this  fact„  tfltas*B  same  ReoordB  .have 
enjoyed  a  very  large  eale. 

I  truet  that  the  entire  li*t  of  3tecnrtts  *i01  :  jwcwe  tesail- 
ly  acceptable,  and  I  alsc  trhet  that  at  no  distant 

able  to  issue  a  very  complete  list  of  Argentine  Records ,  ;se*tt**g  ««r 
experts  down  to  you  to  have  this  done.  Just  when  this  can !fce -dene , 

I  am  unable  to  state,  but  I  on  not  losing  sight  of  the  matter,  and 
Juet  as  soon  as  we  can  arrange  for  it,  .undoubtedly  the  work  will  >be 

With  regard  to  y.dur.  cable  orders  for  these  Records,  follow¬ 
ing  your  suggestion,  we  cabled  you  the  word  "C0RB",  from  which  « 
understand  that  in  any  cable  <|rder  forwarded  to  us  for  these  Records, 
you  will  use  the  special  3-lctter  code  which  we  have  in  use  with 
Australia . 


I  have  noted  your  remarks  with  reference  to  this  party 
still  remaining  in  Buenoa  Aires ,  and  also  that  he  claims  to  have  pr- 


T.J.K.,  -5- 

xanged  with  Tagini  to  sell  the  outfit  referred  to  in  your  previous 

I  am  inclined  to  believe  that  hie  idea  .wa-a  to  frighten 
you  somewhat ,  no  /far  aa  Tagini  duplicating  Records  ic  concamsd/ 
and  I  feel  quite  sure  that  a  man  of  Tagini experience  would  not 
attempt  to  duplicate  our rBecord^ ,  and  make  himsgar  liable  to  probe - 
cution.  As  far  as  Tagini  ie  concerned,  I  am  sure  -that  he  would  not 
hesitate  to  do  a  thing  of  this  kind ,  if  it  were  not  for  fear  of 
prosecution.  However,  it  ie  a  good  -thing  t»  know  what  Ibe  is  duitg, 
ana  If  he  attempts  to  do  anything  in  the  -of  duplicating ,  you 
will  undoubtedly  *e  able  to  get  after  him. 

Youfs  vary  truly. 

V,  S. 


Manager  Foreign  Department, 

Mayo  'ZB,  i9oi 

Srs.  .ffamoB  jr  Suarez t, 

Mayaguez,  p.  £,V 
Muy  Sra.  Jfaeatroaj.. 

“  “  TZ^JX  T*  *  Ta- * — 

les  h9nos  Yeomen  dado  reoientenent  T  ^  ^  5erS0na8  4  Irenes 

y  no.  ..  mto  t  '  M"w<te  yonosr.ros  , 

—• — -  ~  r  — — 

r.oo™nailMo  *  '  T.n®«...  mcho  ^  ^ 

™  ”  *  «=•  t,,,ltorlo.  'W“  “  ***  “““‘•'•M 

la  *>«»,  le,  »  ~ua»  non  «  erect,  „ 

WWb—» •  *a”Pt"  la  >»««  aatuai, 

— *  — -  — *  -  —■  - 
””  81  tab0  lto®>  S'  1«  loo.  P.w(la  y  “'•a  S'  -tree 

m°  *  «™  PfueS.  aetmlto  hil,  '  W"“  "•  ••»•*•»  o.d. 

-  on  r.  “w^T"  W  «  - 

r*  - - — s: ^zrjzzr i  -■ 

—  * .....  a. 

B.oonooo.o.  3l  He  oho  ,„.  e.  p.,%  ,  ’ 

corta  con  la  boca  pequeila  daxia  al  fomogsafo  ana  apaxiencia 
mejor,  pero  el  que  uaase  el  Ponografo  con  ana  bocirn  de  es$e 
genoxo  ci ertamente  oacrifi carla  el  tono  pox  la  aparlencla. 

Kemos  notado  lo  quo  vaa.  manifiesten  acexca  ae  la 
seleccionefi  Puextoxlquefias  y  si  hubiese  alguna  posiblidad  de 
xepxoducixlas  pox'  .medio  de  nuesiraa  bandaa,  del  misrao  raodo  qae  se 
xeprodueixian  pox  lag  bandaa  da  esp  pale,  no  vacilariamos  en 
pedirles  la  rauclca  de  algunas  de  eBtas  seleccionea  a  quo  ae  xe- 
fiereru,  pexo  as  tamos  completamente  seguroaqnela  xendicion  de 
eetao  seleccionea  por  nueatraa  bandaa-  seria  motimo  de  hacexlaa 
pexdex  mucho  de  eu  cnalldad  encantadora  debido  a  qae  aiuestros 
musicos  no  estan  al  tante  do  la  mareexa  de  qae  se  ejectrten  tales 
seleccionea  pox  los  musicos  del  pais, 

Paxa  sa  infoxmacion  po alamo a  raanifestarles  que  nuestxo 
cuexpo  de  pexitos  aboxa  se  h&Lla  en  Mexico  en  doiide  se  dedlca 
a  hacex  una  gxan  lista  de  selecoiones  Bapaflolas  y  esperamos  qae 
al  expedixse  estas  naevan  enconsxaxan  algunas  selecciones  que  lee 
seam  utiles  y  de  aceptaciom  pc:;  su  clientela  . 

.La  pxesente  sereira  de  acusaxeles  xecibo  de  su  peflido 
de  varios  fonogxamas  segun  los  titulos  enumsxados,  Ponogxafo  y 
etc.  Sate  pedido  xecibira  nueetxa  inmediata  etencion  y  se 
despachara  cuanto  antes  positle  y  les  avlsaxsuOB  de  la  fecba  del 

Paxticipandoles  la, a  gxaciao  pox  bu  gxato  pediao,  somos 
de  Vds.  ate.  y  bus  S.  s,  , 

q.  B,  S.  Mi 

Gerente  Depaxtam'teto  Extranjero. 

National  Phonograph  Company  Records 
Foreign  Department  Letterbook  #2 

This  letterbook  covers  the  period  January  5-14, 1909.  It  contains  copies 
of  correspondence  generated  by  and  for  Walter  Stevens,  manager  of  the 
Foreign  Department.  Among  the  correspondents  are  Thomas  J.  Kennedy, 
resident  manager  of  the  Compania  Edison  Hispano  Americana  in  Buenos  Aires; 
L.  L.  Lewis  of  the  Mexican  National  Phonograph  Co.  in  Mexico  City;  and  William 
W.  Wyper  of  the  National  Phonograph  Co.  of  Australia,  Ltd.,  in  Sydney.  Also 
included  are  letters  to  customers  and  agents  in  Africa,  Asia,  South  America, 
Europe,  and  the  Caribbean,  as  well  as  to  commission  houses  in  New  York' 
Newark,  and  elsewhere.  Many  of  the  letters  are  in  response  to  inquiries  about 
the  cost  and  supply  of  phonographs,  sound  recordings,  films,  projectors, 
numbering  machines,  and  other  Edison  products.  There  is  also  correspondence 
regarding  the  importation  of  mineral  wax  and  diamonds  for  phonograph  records 
and  phonographs;  the  price  and  discount  structures  available  to  Edison 
companies  and  agents;  and  business  conditions  in  Mexico  and  Argentina.  One 
of  the  letters  to  Kennedy  contains  comments  on  all  of  the  business  structures 
attempted  by  NPCo  in  its  pursuit  of  foreign  markets.  Also  included  are  numerous 
routine  letters  acknowledging  orders  and  shipments.  Some  of  the  letters  are  in 
Spanish  and  French.  The  spine  is  stamped  "Foreign  Dept,"  "147,"  and  "N.P.  Co." 
The  book  contains  499  numbered  pages  and  an  index.  Less  than  1 0  percent  of 
the  book  has  been  selected. 


i.  5,  1909 

eraraci:  ss&m/aaix  add  list  on 

Shoe.  K.  Kennedy,  Resident  Jfer. , 
Compariia  Edison  Hispano-Americar.a, 
Buenos  Aires,  Argentine, 

W®  teS®  t0  p'c^o"ledge  receipt  of  your  favor  of  the 

-T  ?r0X  iD  Which  >'ou  encl°*°  statement  and  list  of  sales 

as  cf  November  30th,  1908. 

Be  have  noted  your  remit,  resorcin.  Hie  poor  showing 
for  Eoveniber,  tut  horn  no  douht  you  rtll  „k.  0J  ^  ^ 
le  your  next  statement. 

BKlng  OU  things  Into  consideration  we  cannot  hut  feel 

-VV^“  "*  ’*'**  anJ  -  •“  *<»•.  "  »  ar.  sure  you  * 

^  it  is  only  a  natter  of  tim.  then  you  will  not  o.Oy  he  ,bl.  t 
^fr-all  expenses,  but  also  shov?  a  profit. 

Awaiting  y0Ur  further  favors  we  renain, 

Yours  very  truly, 

a'  / 

r  p  A  5  J  -  isJUH'  t 

“'**■*  Manager  Eoreign  Department.  ‘ 

Catalogues,  pro-forma 

5  Jan.  1909 

***“•  A.  Jadmaraje  0ondit, 

^  stT  ’“”*-**»•  *«•«*. 

Your  kind  favor  of  the  ^  ~  _ 

ttt  HS  f°r  Nation,  as  0ur  .  '  **""**  has  ^  ref, 

skip^  to  India,  ^?a“oh  **  not  authorised  to 

c«np lying  with  von*.  „„ 

separate  co**,  a  00J^'  ^  ***  Pl**BUr*  la  "»*««  y, 

“*  ^  *Jr  «“* 

*  ™‘.  ««  „„  t0  *” 

■“»  *-  as*  kl”t”“-’*. 

*  —»*  *.  ~ 0:t:w“iur  - 

“  I1”t  a  ”“>W  „r  IUu  w»  «u  not,  tm 

»««*  ™7”;  ’m*~ in  *-  «...  ■ 

"•  “*•”«'»  *•  -  ttha  - — « 
•OOP,  la  th.  ut  1  ‘ITS  B.  Thlo  kln,t,. 

*—  . « ha,  :i:v“  «*  *. 

*“1‘—  *»  «».  *.««  state,  2“  ™  ““  "  ***  to8“* 
»•  «ratu  wth  .l„trlc  lltet  „  .  °”  *"  fitted 

— . .  -  - 

°*yu-th-  outfit.  Of  whlch 

you  will  find  an  interesting  description  in  the  catalogue. 

By  referring  to  our  film  lists  you  will  note  that  we  supply 
subject  of  every  kind,  suitable  to  please  audiences  of  the  greatest 
variety  of  character.  To  these  lists  we  are  constantly  adding. 
Moreover,  we  are  now  in  a  position  to  quote  you  a  low  price,  only 
$.08  per  foot. 

In  order  that  you  may  form  an  idea  of  the  cost  of  an  "Underwri¬ 
ter's  Model"  kinetosoope,  an  Oxylith  outfit  and  5000  feet  of  film, 
we  are  enclosing  a  pro-forma  invoice,  showing  the  cost  of  the  same, 
to  the  amount  of  which  we  have  added  the  approximate  freight 
charges  to  Madras. 

Our  teimB  are  cash  with  order;  we  deliver  all  goods,  free  on 
board  vessel,  this  port,  and  we  make  no  charge  for  packing,  if  you 
prefer,  however,  you  may  send  us  50^  of  the  value  of  the  order  and 
for  the  balance  we  will  draw  on  you  at  sight,  against  bills  of 

With  regard  to  discounts.,  we  beg  to  state  that  we  only  allow 
the  same  to  those,  who  desiring  to  take  up  the  sale  of  our  goods, 
favor  us  with  an  initial  order  for  two  kinetoscopes  or  for  three 
phonographs  and  150  recordB.  If  you  care  to  give  us  an  order  of 
that  size,  we  shall  be  glad  to  quote  you  discounts. 

In  reply  to  your  enquiry,  we  beg  to  state  that  our  various 
circus  films  have  been  cut  from  the  catalogue  and  can  no  longer 
be  supplied.  You  will,  however,  find  many  other  Interesting  sub¬ 
jects  on  our  list.  All  recent  film  supplements  contain  a  full  de¬ 
scription  of  the  film. 

Thanking  you  for  your  kind  enquiry  and  assuring  you  that  any 
order,  with  which  we  may  be  favored,  will  receive  prompt  and  careful 
attention,  and  awaiting  your  further  favors,  wa  beg  to  remain, 



Mr.  w.  W.  Wyper, 

Manager,  Hational  Phonograph  Co.  of  Australia,  ltd. , 

P.  0.  Box  146,  Sydney,  H.  S.  VI. ,  Australia, 

Dear  Sir:- 


Vie  heg  to  acknowledge  receipt  of  your  favor  of  Hov.  loth  and 
note  that  you  have  Been  seriously  considering  the  matter  of  cutting 
down  your  list  of  monthly  reoords.  1  think  it  would  he  very  wise  for 
you  to  follow  out  this  plan,  as  it,  undoubtedly,  works  out  a  hardship 
to  your  Jobbers  and  Dealers  to  carry  a  complete  stock  of  monthly  reoords , 
in  view  of  the  faot  that  we  have  been  listing  24  American  Reoords  each 
month  and,  in  addition  to  this,  you  have  11  of  the  British  list,  making 
a  total  of  35  new  reoords  each  month.  My  suggestion  would  be  to  elimi¬ 
nate  entirely  some  of  the  talent  on  both  the  American  and  British  listB 
for  which  there  is  little  demand  in  your  territory  and  bring  the  liBt 
down  to  not  more  than  24  eaoh  month  of  the  two-rainute  reoordB.  At  the 
present  time  we  are  listing  go  two-minute  and  14  "Amberol"  Reoords  jkst 
month:  However,  I  believe  our  people  expect  to  deorease,  as  soon  as 
possible,  the  list  of  two-minute  records  and  increase  the  list  of 
"Amberol  Reoords? 

How,  when  you  begin  to  place  the  "Amberol  Reoords"  on  the 

Mr.  W.  W.  Wyper,  (Cont’d,) 

Deo*  31,  1908. 

market,  this  will  atill  further  increase  your  record  list.  You  could, 
if  you  saw  fit,  cable  us  to  eliminate  certain  talent  from  the  list  of 
two-minute  records,  and,  when  placing  your  order  for  monthly  selec¬ 
tions,  we  could  follow  your  instructions.  We  leave  this  matter 

with  you  and  await  your  instructions.  I  fully  appreciate  that  it 

will  be  rather  a  difficult  matter  to  eliminate  entirely  some  of  the 
talent  on  our  list,  even  though  the  sale  of  records  made  by  certain 
talent  does  not  enjoy  a  large  Bale.  We  send  the  London  Offloe  a 
list  of  numbers  each  month  and  they  immediately  cable  us  to  eliminate 
from  the  list  certain  titles  which  they  think  they  oan  dispense  with. 
They  list  monthly,  I  believe,  12  two-minute  reoordB. 

I  am  sure  you  will  give  this  matter  careful  consideration 
and  we  shall  be  pleased  to  follow  your  instructions  regarding  the 
matter  of  eliminating  certain  titles  Just  as  Boon  as  you  notify  us  as 
to  your  wishes. 

How,  with  regard  to  the  allowance  of  2#  which  you  have  been 
making  to  Jobbers  on  aoaonnt  of  defective  and  broken  records,  it  would 
appear  to  me  that  you  would  be  Justified  in  continuing  making  this 
allowance  on  the  2$  basis,  as,  undoubtedly,  your  clients  are-in  a 
measure-justified;  whereas,  if  this  privilege  was  denied  them,  it 
might  cause  no  little  dissatisfaction  and,  in  the  end,  work  out  to 
your  disadvantage. 

Yesterday,  at  the  Factory,  I  had  a  conversation  with  Mr. 

Mr:,  w.  W.  Wyper,  (Cont'd.) 

Deo.  31,  1908, 

Wilson  regarding  the  new  arrangement  which  became  effective  August  1st 
of  this  present  year,  and  more  particularly  with  regard  to  crediting 
your  office  with  defective  records.  He  seemed  to  be  under  the  im- 

preBsion  that,  in  view  of  the  fact  that  these  records  are  being  sup¬ 
plied  at  factory  cost,  the  factory  should  not  stand  any  olaim  for  de¬ 
fective  records;  Of  course,  X  oould  not  agree  with  him  on  this  point 
and  we  have  agreed  to  Bubmit  the  matter,  for  final  decision,  to  Mr. 
Dyer.  I  shall  take  up  this  matter,  at  the  earliest  moment,  with 
Mr,  Dyer  and  will  endeavor  to  have  him  agree  to  permit  you  to  charge 
baok  to  us  defective  reoordB  whioh  you  receive  from  your  dLients .  So 
far  as  allowances  of  this  kind  are  concerned,  these  have  been  in  the 
past,  in  a  way,  offset  by  the  broken  material  i*idh  you  have  returned, 
but  the  Bystem,  Which  we  now  employ,  makes  it  impossible  for  us  to  use 
any  of  the  broken  composition  as  used  in  the  two-minute  records.  X 
am  told  by  experts  at  the  factory  that,  if  one  or  two  two-minute  record 
are  put  in  a  tank  with  the  composition  of  the  "Amberol"  Beoords,  the 
entire  composition  used  for  the  four-minute  records  would  be  ruined. 
This  may  be  drawing  the  matter  to  a  fine  point,  but  it  is  a  fact  that 
not  a  partiole  of  the  two-minute  composition  oan  be  used  in  the  manu¬ 
facture  of  the  four-minute  records. 


lours  very  truly. 

Manager  Foreign  Department. 

6  Jan.  1909 

Re  refund  of  duty 

The  Wells  3?a*6°  tf*?*680  60., 

yorei-g*1  &  Importing  Department, 

51  RrOadway ,  city. 

a.ntlraen.  ^  ^  ^  hani  y.„  herewith  yur  lutolc.  tag,  oo«rl»s 

the  Iwportlug  of  a  ehlpwent  «  •*—  “"“S*4  ” 

the  Bdieon  Phonograph  Borke,  Orange,  ».». 

We  would  respectfully  call  wear  attention  to  the  tact  that 

„  horta  and  epllpt,  were  not  *-  *>  “  **? 

..  they  actually  were,  no  duty  eheuld  he  charged  ther.on.  * 
therefore  ae*  you  to  kindly  take  the  up  with  the  Proper  On- 

tone'  Official,  la  an  «*■««*  «  ”•«’**  *“  ^  ^ 

please  giro  thi.  your  tt-dl.t.  attention  aid  addr...  your  re- 

ply  to  the  writer,  obliging, 

.  Yours  very  truly, 

/  .... 


"  Orange,  U.  J.  ' 

Dear  siri- 

Deg  to  hand  you  Brie  B/l.  ooverin*  213  befea  of  erode  mineral  esr, 
forwarded’ to  you  per  Brie  B.  B.  on  the  4t»ila»t. 

!Eha  ahovo-  forna  part  of  a  ehipnstat  of  SIS  bagg  er  w  imported  from 
HanflmrB  per  s/B  "EBETOBU".  The  balance  of  2  baga  will  be  forwarded  Just- 

as  eoon  as  it  passes  the  Cugtons. 

Toura  -very  truly. 

Aes'to  Manager,  Kinetograph  Dept., 
Edison  Manufacturing  Co.i 
Orange a  if.  j.  s 

Dear  Sir:- 


You  will  recall  that,  some  days  ago-during  a  visit  to  the 
laetory,  I  referred  you  to  your  invoice  #04l6A  covering  2270  feet  of 
film  covered  by  our  requisition  #3696. 

At  that  tine,  i  0.1104  year  .Mention  to  ths  fast  that  you, 
had  dh.rgod  those  ah,,  to  the  foreign  p.partnent  at  d-l/s,  per  *,* 

"i'<’”84  r°”  r<""  “a*1  dated  sapt.  Sth-in  nhlo  yen 

attach  a  hist  of  fil.s  end  e«„ng  *1A  the  .adjects 

la  this  sales  tallotlu,  yoa  stated  that  the.,  til™,  .beolntsly  „ 
asterthele,,.  yoa  advise  that  oar  order-covering  so,,  of  the  subjects 
adv.rtls.d-™.  „a,  ap  for  as.  haace  the  addltloaal  charge 

dlac.  bringing  the  .att.r  to  year  attention,  1  have  received 
letter  fro,  oar  H.uioun  Office  In  *1  oh  they  state  that  they  sold  the 
films  referred  to  at  H  per  foot  in  Merlon  Oity-on  account  of  having 
received  the  sales  bulletin  referred  to,  and  oonplain  .boat  the  price 
charged  to  theip,  viz:-  6~l/2jJ  per  foot. 

2  24 

Ur.  John  Pel zer,  fCont'd.) 



This  matter  was  talcen  up  with  Hr.  Dyer  in  order  that  the 
matter  may  be  adjusted  to  the  satisfaction  of  the  Hex loan  Office,  and 
he  instructed  me  to  communicate  with  you-asking  if  this  entire  order 
was  specially  made  up  for  the  Foreign  Department,  or  whether  a  number  of 
the  films  were  taken  from  the  stock  Which  you  advertised  to  sell  at  5^ 

■per  foot. 

I  should  be  pleased  to  have  you  look  into  this  matter  and 
render  the  proper  credit,  if  wo  are  entitled  to  some. 

Yours  very  truly, 

/^cltidA.  •  ■  '  /U'ltt/ 

Manager  Foreign  Department.  /'■ 




Jan.  6.,  '190?  . 

;r„  I,.  X..  Lewie , 

Manager  ,  Mexican  national  Phonograph  Co . » 

Apartado  #2117,  Mexico,  D.  F„,  Mexico, 

joar  Sir:- 


Vie  teg  to  acknowledge  receipt  of  your  favor  of  tne  ir5th 
irox-ulto .  fn  which  yon  acknowledge  receipt  of  ours  of  Hoy.  6th. 

I  have  read  your  letter  very  carefully  and  note  whet  you 
3 ay  about  the  trade  prefering  to  rail  other  cyllndri.e^  machines  on 
account  of  their  receiving  40?,  discount  against  ef&  whicn  we  axiom. 

V/ith  reference  to  youv  request  *hat  we  authorize  you 
crease  your  percentage  of  discount  to  40?  on  the  new  equipment  and 
Amber ol  Machines  hy  adding  §5.00  United  States  Currency  more  then  the 
American  price  for  the  Amherols  and  §2.50  more  «h«.  the  American  price 
for  the  new  equipment.  In  reply  would  state  that  I  think,  if  you 
will  give  this  matter  very  careful  consideration,  you  will  agree  with 
me  that,  to  materially  increase  the  list  prices  of  cur  machines,  would 
ho  detrimental,  By  increasing  th-,  list  prices  and  the  disc,  lats.  it 

would  simply  mean  that  your  3bi  bern-who  are  procuring  our  goods  from 
the  States  at  United  States  prices  -ould  receive  an  advantage  over  the 
Jotters  who  are  purchasing  their  i  from  you  at  Mexican  prices.  This 

would  give  the  Jobbers, -purch  a.  i'. ,  Hew  York  prices-a  decided  advan- 

2  - 

*“SS:  ““  t00‘  “  ”*  »"*«*  «>•  faot  th.t  .S6.0C,  „  5W  0„ 

iaoro"'  -  th° — - —  - 
“ Z  -  ‘  WShil  t0  J0“r  -  ~  •*  u* 

».u  o^rzziiiLzitZrZ.  r  trM° are  i”oii“81  to 

« *•  — ;:r  ~  - 

«“*  «•  conditions  ha..  foI  '  «“  •»«*• 

7 — -  -  -  :r:r:::;:r4.r 

-  L  ‘2721  Z~TZ  *  ,,XIIt“ * 

*.  -x— 

o«etoel  plon  r  r  ”,jia  *• Bi>s  *« •«“»  t. 

— z,z?zzzzz?mr* to 

I»ia».«erras  .  ...  tlum  tlia.prleae  obtained  in 

-  ~ — «. »,  z:z-rzrr°*iiy  **  *•  °“-“ 

-  **,»  th.  szJ,Z7Za  “ttar  ”*8  slV8° 

«“  —see  you  .  Wrt  ...  y  ,r,.  '  IZZ  “  "  “i8 

•«*•. .  «,ls  laol..  ,,„1=s  t;„  IlBt  •  "r“s;  *° 80  -**  «* 
MerELoi-n  Cart .  -  ,  P  03  of  in 

apparatus  Ti'T"  ^  Prl""  °f 

yu_  wj.1^.  recognize  the  necessity  far 

jsity  for 

%.  I .  Lev; is 

Manager,  Mexican  national  Phonograph  Oo , , 

Apartado  #2117,  Mexico,  D,  F„ ,  Kexioo, 

We  heg  to  acknowledge  receipt  of  your  favor  of  the  551st 
ulto.  in-re  prioes  Combination  Machines ,  Combination  Attachments  and 
"Amberol  Reoords." 

I  found  it  neoassary  to  delay  replying  tc  your  letter  of 
recent  date  regarding  the  prices  on  the  above  apparatus,,  as  I  desired 
to  go  into  thin  matter  very  carefully  before  malting  a  decision. 

Under  yesterday's  data,  I  wrote  you  fully  in  regard  to  this 
matter,  giving  you  my  reasons  for  adhering  to  the  old  line  of  discounts, 
and,,  for  your  information,  enclose,  here7/ith,,  a  catalogue  with  the 
prices  properly  marked  and  would  ask  you  to  immediately  proceed  with 
the  printing  of  your  agreements  in  order  that  they  may  he  ready  for  dis¬ 
tribution  on  or  about  the  time  you  are  ready  to  accept  orders  for  new 
Comhination  Machines,,  Combination  Attachments  and  "Amberol  Records." 

In  having  these  contracts  signed  by  your  Jobbers,  do  not  over¬ 
look  the  faot  that  you  are  to  specify~in  these  contracts-the  amount  of 

Mr,  I.  I,  lawia,  (Coat'd.,, } 

Jan.  7,  X9o9 

business  that  the  Jobbers  must  give  you  per  year,  and,  just  as'  soon 
as  these  agreements  are  ready,  I  Should  be  pleased  to  have  you  Send 
me  two  (2)  copies  of  eaoh. 

Yours  very  truly,, 

Manager  Foreign  Department. 



Jan.  7,  1909. 

Hr.  W.  W.  TJyper, 

Manager , 

National  Phonograph  Co.  of  Australia,  Ltd., 
p.  0.  Bor  146,  Sydney,  S.  S.  W. ,  Australia,' 

pear  Six:- 


W  to  atao.l.dg.  reoeipt  of  *>«*  letter  of  ....  loti,  and 
....  ^  dia  appointed  t.  me  that  .o  m^le  to  supply  the  re.  and  »«>'!  Booords  at  an  earlier  dote.  . 

1  oar.  appreciate,  in  vie.  of  the  edvenoed  l»for„tlon  xeoeiv- 
ed  by  poor  elimts.  tint  y»  have  toon  pl.oed  in  an 
ion.  tut  *1.  ms  a  natter  ..  could  not  Poeedhly  «-«•  *»  «» 
w  ond-in  the  e»d-I  feel  ttit.  aura  .ill  .or*  out  to  your  a  «■ 
this  particular  reapeot,  ae  yea  Sac,  «h«  u  ruff  naolin.  or  aay 

'  parata.  ia  pat  oa  the  narS.t-ev.n  «  -*  ™—“  “  ‘  . 

oughly  teated  talas  pl.-d  on  the  narSet.  certain  inprevaneate 
immediately  folio..  .her.  1.  no  doott  that  oar  people 
rapid  strides  in  improving  the  Amherol  Records  since  the  r  placed  0,  the  aarSet.  and  the  product  no.  iaaa.d  ia  aaperiar 
the  firat  Hat.  »y  of  the  sahj.ats  have  h.en  —  «“■  * 

reault  of  *iah  «.ve  then  a  much  ano.thar  and  • 

too.  on  aooonnt  of  th.  eapphlr.  naad  on  th.  »«  epedSar  Utt,  V 

-  2  - 

Mr.  V/.  \7 .  Wyper ,  (Cont'd.) 

Jan .  7 , 


delicately  made,  It  was  a  serious  problem  for  our  people  $$  get  out 
enough  of  these  sapphire  points  to  provide  for  their  output  and  it  was 
necessary  to  educate  a  large  number  of  people  along  the  line  of  getting 
out  perfect  sapphires  and  were  very  seriously  handicapped  on  account  of 
their  inability  to  produoe  a  sufficient  number  of  these  sapphires  for 
the  ruu chines  and  attachments  that  were  waiting  for  them:  Then  too,  the 
demand  in  this  Country  was  so  largo  that  it  would  seem  suicidal  to  at¬ 
tempt  to  supply  our  foreign  people  with  these  parts  when  they  could  not 
begin  to  supply  the  demand  in  this  Country. 

How,  with  regard  to  the  machines  that  we  are  turning  out  with¬ 
out  the  end-gate.  Jor  a  long  time,  we  have  been  supplying  this  type  of 
machine  in  Hew  York  State  on  account  of  a  certain  patent.  In  dispens¬ 
ing  with  the  end- gate ,  it  was  necessary  to  practically  reconstruct  that 
„  r  v.4.  *  -tv  .  ,  fcy  providing  a  longer  bearing 

part  ox  uhe  phonograph  Whs. on  supported  the  mandrel,  and  out  pfeople  im¬ 
mediately  produced  a  machine  which  the  trade  generally  acknowledged  to 
be  superior  to  the  type  on  whidb  the  end-gate  was  used,  •  So  far  as  I 
know,  not  a  single  complaint  has  boon  received  and  all  seem  to  agree 
that  the  machine,  without  the  end-gate,  is  really  superior.  you  will, 
undoubtedly,  reoeive-from  this  time  on-some  of  each  type  of  these  mach¬ 
ines  and  you  should  make  it  clear  to  your  people  that  each  of  these 
types  are  late  models  and  that  the  machines  supplied  without  the  end- 
gate  aro  not  a  new  type.  They  are  both  new  machines,  bnt„  in  view 

of  the  fact  that  so  many  of  them  have  bean  manufactured  without  the  end- 
gate,  it  has  been  decided  to  abandon  the  machines  on  which  the  end-gate 
appears . 

Kr*  %  V/.  vyper,  (Cent' a,} 

«M  regard  to  prices  &  the  „„ 

UI  Wltt  Pilous  corrcepoadeaoe'.md  ..  .a. 

v„od  thet  ».tt.r  .odd  in  jmr  ^  „ 

**'  ”»««»«»  «*•«»*  1»  y„,r  territory  tetter  the,  ..  do. 

Iruottag  wo  have  «,«de  thl.  »,ttor  eatlrely  to  poa,  ». 

remain a 

Yours  very  truly, 



Ea auger  foreign  Department. 


Catalogues,  ate , 

7  Jan.  1907 

Mr.  Oxan  Ourfalian, 

Adana,  Turkey  In  Asia. 

Dear  Sir:- 

We  hare  your  kind  favor  of  the  7th  ult.,  and  complying  with 
your  request,  we  take  pleasure  In  sanding  you,  under  separate  cover, 
a  complete  set  of  our  catalogues,  which  you  will  find  fully  descrip¬ 
tive  of  all  our  manufactures. 

We  note  that  you  are  especially  Interested  In  Moving  Picture 
machines  and  film  and  hy  referring  to  the  corresponding  catalogue, 
you  will  note  that  we  list  machines  ranging  in  price  from  #75.00  to 
#225.00.  All  these  machines  are  of  first  class  construction  and  work 
-manahip,  aa  of  course  they  must  be,  being  associated  with  the  name 
of  the  greatest  inventor  in  the  world,  but  if  you  want  the  very 
best,  we  recommend  our  "Underwriter's  Model,  type  "B".  This  kineto- 
scope  is  used  by  some  of  the  largeet  exhibitors  in  the  U.3.  and  «a- 
■bodles  all  improvements,  including  special  devices  for  eliminating 
•flicker"  and  for  affording  protection  against  fir*.  All  our  kineto- 
scopes  are  fitted  to  be  operated  with  light  eupplied  by  direct  or 
alternating  current  electricity,  but  where  electric  current  is  nol* 
available,  we  recommend  the  use  of  our  "Oxylith"  outfit,  of  which 

you  will  find  an  intereating  deaoription  in  thd  catalogue,  t;>> 

In  reply  to  your  enquiry,  we  beg  to  aoaure  you  that  we  carry 
film  of  every  Variety  of  intereat.  Our  list,  already  large,  is 
being  constantly  added  to,  and  We  anticipate  increase  of  dramatic 
vigor  in  acting  with  improvements  to  the  limit  of  possibility, 

You  will  be  glad  to  learn  that  we  are  now  selling  all  film 
at  only  $.08  per  foot. 

In  order  that  you  may  form  an  idea  of  the  cost  of  our  latest 
’•Underwriter  Hodel”  machine,  an  Qxylith"  Outfit,  a  good  supply  of 
-chemicals,  extra  parts,  that  are  most  apt  to  suffer  from  wear,  and 
5000  feet  of  film,  we  are  enclosing  a  pro-forma  invoice,  to  the  amount 
of  which  we  have  added  the  approximate  freight  charges. 

In  reply  to  your  enquiry  as  to  the  time  it  takes  to  run  film, 
we  bag  to  advise  that  a  thousand  foot  film  will  take  about  twenty 
minutes  to  exhibit.  In  reply  to  your  further  enquiry,  we  beg  to 
state  that  our  kinetOBoopes  are  fitted  with  stereopticon  attachment, 
so  that  you  could  vary  your  exhibition  by  casting  still  views  on 
the  screen. 

With  all  our  kinetoscopeB  we  send  full  directions,  for  operating 
and  no  person  of  even  average  intelligence  should  find  himself 
incompetent  to  conduct  an  exhibition. 

Our  terms  are  cash  with  order;  we  deliver-  goods,  free 
On  board  vessel,  this  port,  and  wa  madge;  nb  charjgx  for  packing. 

With  many  thanks  for  your  kind;  enquiry  and  assuring  you  that 
we  shall  be  glad  to  give  you  any  further  information  you  may  desire, 
we  beg  to  remain. 

Yours  very  truly, 

Ur  Manager,  foreign  Department', 



Manage  ,  Compania  Edison  Hispano  Ameri.sana, 

Viamonte  #515„  Buenos  Aires,  Argentine  P 


V/e  bag-io  acknowledge  receipt  of -your  favor  of  Eov.  7th  in 
vfoicn  you  eckoowl  dge  receipt  of  ours  of  Sept.  16th. 

X  have  read  your  letter  with  interest  and  am  not  surprised 
to  receive  the  information  as  contained  therein. 

COBSIffi?MEETTS 1  can  appreciate  the  obstacles  you  have' -met 
in  the  way  of  establishing  dealers  on  the  terms  and  conditions  which 
you  impose  on  prospective  Dealers  and  Jobbers  in  your  territory,  your 
experience  has  bean  duplicated  by  nearly  all  of  our  Foreign  Branches, 
and  it  seems  to  be  a  very  difficult  matter  for  Dealers  in  Foreign  Terri¬ 
tories,  afuer  they  are  established,  to  manifest  any  great  interest  in 
regard  to  pushing  the  sale  of  our  goods.  The  tendsnoy  is,  ns  you  -stabs, 
to  purchase  some  cheap  type  of  phonograph  and  simply  use  our  records  in 
connection  with  these  cheap  machines:  Then  too,  we  appreciate  the  fant 
that  there  is  a  tendency  on  the  part  of  some  Dealers  in  Foreign  Countries 
to  show  a  proferenoe  for  the  disc  goods.  This  condition  has,  undoubted¬ 
ly  teen  brought  about  by  the  feet  that  the  manufacturers  of  dfec  machines 
^ve  been  a  long  time  catering  to  this  particular  branch  of  business,  j 


Mr.  1’hoB,  J.  Kern e&y,  (Cont'd.) 

Jen .  7,  1909. 

end  most  of  these  mam .f actv rera  have  a  large  repertoire  of  foreign 
records,  which,  naturally,  appeal  to  that  particular  trade:  Then  too, 
the  larger  discs  .ontain  a  gj eater  amount  of  matter,  enabling  the  manu¬ 
facturers  of  disc  records  to  record  many  selections  that  can  not  he 
recorded  oomplete  on  one  of  our  two-minute  records.  In  this  connec¬ 
tion,  however,  wi:h  the  introduction  of  our  new  "fonberol  Records",  I 
believe,  we  oan  mire  than  meet  this  objection.  These  particular  records 
run  more  than  four  iinute.3  and,  in  the  list  we  have  already  issued,  you 
will  note  we  have  :ome  very  popular  selections.  The  <Suao  people, 

having  been  in  the  foreign  field  for  a  mucin  longer  time,  naturally,  the 
people  have  boon  educate/’,  to  believe  that  they  are  superior  to  tho 
cylindrical  machines,  but,  oo  you  state,  I  believe  that,  just  as  soon 
as  you  are  able  to  properly  place  our  phonographs  before  the  buying 
public,  their  superiority  will  be  immediately  reoognized. 

How,  in  view  of  the  difficulties  you  have  experienced,  it  is, 
undoubtedly,  very  necessary  that  you  devise  some  plan  to  have  our  goods 
properly  represented  in  the  different  retail  establishments  in  your 
City,  and  you  have,  in  a  large  measure,  solved  this  problem  im.  arrang¬ 
ing  with  a  number  of  business  houses  to  put  , in  a  sample  line  of  your 
machines  and  records  ok  consignment,  with  the  understanding  that  they 
will  properly  display  bhese  goods  at  all  times  and  do  everything  pos¬ 
sible  to  encourage  their  sale. 

I  wiah  to  state  here  that  your  action  in  this  matter,  in  • 
view  of  the  existing  conditions,  is  thorou^ily  approved,  although  you 

J.  Kenxedy,  ( Coat'd.) 

Jan.  7,  1909 

understand  that  this  is  -  d' 

Utu,,  departure  from  our  policy,  ao  we 
ha. e  never  allowei  any  of  our  0d.  +n  , 

S’-  de  to  go  out  on  consignment  in  foreig, 

1  ""  iK  PlaCi3‘S  theso  ^oignment  accounts,  that  you 

I;  CertBln  ™  **  ^  their  agre ement 

stotk “d  ^ —  *-  ,o0aS  ecu.  ffld, 

.  .  *“  “  ''“i  Cf  “y  °:  thS  P  rties  to  rtlom  S°°ds  are  consigned  not 

“7* I”1"  *’  *='  -*«  ~ «.  ****  *.  to 

good  condition,  l  ain  ruv.a  . 

T.  .  .  '  "  '  •  “  11b  immediatelyv  withdraw  the  goods 

It  is  true,  in  a  ctrfca-n  +.  .  * 

will  ho  a  loa3u  hut  t w/.  r  ;  PerCeat8S°  °f  reUOrfe  5°nSiened 

advertising  ,  *  '  °  that  thQ  resulte -obtained  from  an 

ad .  rsrtislng  point  of  v.ew-will  offset  the  loss  sustained. 

„  .  +  ln  ViSW  °f  the  £b0V°'  *”>«  *»  »o  doubt  that  your  action  in 

hJLTAJej  SSteP  iD  1116  r%ht  dlretrU°a‘  ^  *****  al3°ut 

ond  "  ‘0SS  CunSlszunent^  you  cover  this  very  fully  iE  your  _lsttQr 
„J  “  ^  SUeS''3t“  ifs  llft6r  ^  thiS  “  thorough  trial,  you’ 

arr_  T  ^  **  ^  «  discontinue  the 


S2IAIL  STORE:-  t  sino.rely  trust  that  it  will  never  be 
-essary  for  you  to  open  a  retail  store  ,n  order  to  bring  our  g00ds 
;'S  attentl°a  'if  buying  public,  and,  in  this  connection.  i  want 
inJl  "T  0:CP°rieiCe  111  M63;l0°  aloaS  tola  particular  line,-  ^ 

existed  tj  tSd  1  "°Una  Pr?°^iCallr  the  sa-  conditions 

16 rS  03  y°Us  n3  a°abt*  fo™4  to  Buenos  Aires:  our  Dealers 
there  were  more  dead  th.n  alive;  goods  were  handled  in  a 

Mr,  I'hoa.  J,  Kennedy,  t‘  Coat'd, ) 

manner;  no  at  ten*,  Ion  was  giver  to  the  natter  of  display;  very  little 
advertising  was  done  and,  in  fact,  the  Dealers  manifested  no  interest 
whatsoever.  Mr.  Cabanas  end  I  talked  over  thi  matter  for  some  time; 
we  visited  our  Dealers  ana  Jibbers  there  and  found  it  almost  impossible 
to  inject  any  lifj  into  then,  and,  after  considering  the  matter  very 
carefully  'although  I  knew  that  Mr.  Edison  and  the  Officials  of  our 
Company  were  very  inch  opposed  to  arrangements  o?  thi3  kind),  in  view 
of  existing  conflations,  it  was  deemed  advisable  to  open  .a  retuil  stare 
in  order  to  bring  Et.'.soi,  produotB  to  the  attention  of  the  buying  public 
in  Mexico  City:  A  atire  was  rented  on  one  of  the  main  streets  in  the 
very  best  part  of  che  City  aiid  a  very  attractive  display  was  gotten  up. 
Very  soon  after  ihe  opening  a  fa:.rly  good  busineisc  was  done,  but,  as  our 
Manager  could  ndt  givo  his  personal  attention  to  t-hs  management  of  the 
store,  it  was  necessary  to  hire  <'f  responsible  party  to  act  as  manager. 
2hie  store  was  continued  tar  one  year  and  was  finally  turned  over  to  a 
Jobber  whom  we  established.  Although  this  store  served  our  purpose  as 
an  advertising  medium,  the  expense  of  running  same  was  so  large  that  it 
practically  eliminated  svery  dollar  of  profit  and  Z  bslieve  it  would  be 
impossible  for  us  to  maintain  an  organisation  in  any  foreign  field  with 
the  idea  of  making  any  Honey  by  doing  purely  a  retail  business.  It  is 
possible,  howevei,  that^  as  a  last  resort,  you  may  deem  it  necessary  to 
take  this  step,  but  I  vrcuia  ask  you,  before  considering  a  matter  of  this 
kind,  to  kindly  1;ake  the  matter  up  with  me  and  I,  in  turn,  will  take  it 

X.  Elios.  J.  Kem  edy,  (Cr'ntfd.). 

md  that  these  commiss 

i  to  allow  regular  Dealer’s  dis~ 

OOBIMISSIOH  HOPPES;---  I  aote  that' many  people  in  your  terri¬ 
tory  purchase  goo  is  through  c  munition  houses  and  that  these  coimissipn 
houses  expect  to  lake  a  profit  oi  such  purohaftes.  m  vie7;  of  this 

position,  it  is  perfectly  proper  for  you  to  allow  reg-.ilar  Dealer’s  die- 
count b  to  reliahl.  commission  houses,  providing  -bhey  ere  giving  you  a 
reasonable  amount  of  business,  and,  for  your  information.  wo*lU  state 
that  it  is  our  custom  here  to  allow  regular  Dealir’s  discounts  to  com 
mission  houses  provided  they  place  an  order  with  us  for  three  (3) 
machines  and  150  records.,  After  they  have  placed  this  order  with  us 
we  then  allow  them  Dealer’s  discounts  on  all  farther  orders,  hut  it  is 
distinctly  understood  th*t  they  are  not  to  el  low  any  discounts  to  their 
clients-unless  their  climts  are  regular  established  business  houses 
and  give  them  an  initial  order  for  three  f&)  maohines  and  150  records. 

If  orders  come  to  them  from  private  individuals,  then  we  insist  that 
they  obtain  list  pricer,,  retaining  themselves  the  entire  amount  of  die- 
counts  allowed* 

Vie  have.  In  the  past,  done  a  large  business  through-  commission 
houses,  hut,  at  the  present  time,  being  so  well  represented  .abroad  by 
our  own  Companies,  we  receive  very  little  commission  business.  It  is 
perfectly  reasonable,  however,  that  a  commission  house  should  receive 
some  concessions  in  the  way  of  discounts.  Our  competitors,  as  a  rule, 
grant  these  discounts  much  more  freely  than  we  do  and  it  simply  means. 

clientB-unlesB  their  olimts 

xa'°  Thc,f;*  &  Kennedy,  (OontJdv) 

If  commission  houses  „  purohaeo  .  lttl  of  „„Mm3  ^  „„ 

..n»f.o..i.u  and  rs.eiv,  discounts  and  cannot  obtain  discounts  a„B 
another  ..nuf.oturor ,  tiny  .m  sl.ply  divert  business;  ».  too 

»««■  »«■  travelling  r.pres.nt.tivoe  .ho  go’ 
into  territories  that  it  Is  nlnont  i.poositl.  for  us  to  r.ooh  and,  if 
we  expect  them  to  repnsent  our  lines,  we  must  ask*  i-H  m 

**««  than  employ  travelling  sale, 
,  whioh-invariably-maan  a  large  expense.  I  think  it  , 

r  lines,  to  allow  ther 

a  large  expense,  I  think  it  would  he  very 
its  could  he  made  with  salesmen  who  are  ear: 

also cunt  on  all  sales  iu.y  make  for  your  aocourfc  and,  in  this  way  you 
oan  obtain  additions!  business  Without  ..ploying  Jr.v.lling  sate,„en. 

msmm-—  I  note,  witt  i,W,  .hat  you  say  regarding 
jour  trip  to  this  City  and  can  rladily  understand  that,  in  ixjrodnciug 
cylindrical  machines,  ySn  mat  .tin  oonaidarabls  opposition. 

If  yon  i.  .aha  connections  with  Kessrs.  Coats,  d  to.,  Who. 

I  too.  vsry  .all  by  repute,  1  think  it  would  work  out  greatly  to  your 
adv.nt.go,  oad,  1»  order  to  influence  those  people  to  take  np  the  sale 
of  our  goods,.  1  think  it  would  bo  p.rfsotly  proper  for  you  to  give  then 
exclusive  sale  of  our  good,  for  a  United  ti»e.  !*  thw  .ooept 
jour  proposition,  grant  the.  the  territory  for  .  period  of  one  (11  year 
and  point  ont  to  the.  that,  if  tlo  is  satisfactory  to 
warrant  it,  you  mu  he  very  gl.j  to  extend  the  privilege  f„.  ti.e  to 

.Jr ,  i'koB .  J .  Ee  an  edy  4  (  Cont '  d , ) 

If  you  find  it  ’.mpoasible  to  prevail  Upon  them  to  accept  the 
your  proposition,  then  it  would  ho  wise  to  make  the  time  two 

(2)  years,  us  you  must  admit  that,  unles 

lie  assurance  that  the  privilege  wouli 
i  warranted  in  spending  considerable  i 

lid  be  extended,  they 

In  making  an  arrangement  of  this  kind,  it  would  be  well  to 
state  in  the  agreement  that  the  agreement  oah  be  cancelled  by  either 
party  upon  giving  three  (3)  months  notioe. 

you  can  certainly  afford  to  make  this  proposition  to  theso 
people  if  they  will  give  you  an  order  for  100  machines  and  5,000  records 
and  guarantee  to  purchase  goods  to  the  amount  of  $5,000.00  gold  within 

I  havo  always  understood  that  Messrs.  Coates  &  Co.  were  very 
responsible;  however,  I  will  arrange  to  get  a  report  through  Bradstreete 
as  to  their  responsibility  and  will  forward  some  to  you  at  the  ear¬ 
liest  moment:  naturally,  some  little  time  will  elapse  before  you  re¬ 
ceive  this  report:  lo  cable  this  report  would  he  very  expensive  ana 
very  unsatisfactory,  consequently,  it  will  he  three  (3)  months  before  1 
can  get  the  report  to  you. 

In  view  of  the  credit  extended  to  responsible  people  by 
European  concerns,  you  may  find  it  necessary  to  give  responsible  houses 
more  than  30  dayB  credit.  I  think  it  will  really  *e  neoessary  for 

you,  in  a  measure,,  i)  oonform  with  the  rule  gcveming  orodit  in  your 
country,  hut  it  iB  -rary  necessary  that  people  to  whom  you  extend  oredl 
be  thoroughly  responsible . 

I  trust  thj'.t  nothing  will  interfere  with  your  mating  this 
proposed  connection,  as  I  km  stire  it  will  work  out  greatly  to  your 
advantage,  and  note  Hat  you  will  advise  us  later  4k  to  the  result  of 
the  negotiations  with  th’esb  people. 

Yours  very  tri/.ly. 

Manager  Foreign  Department. 

president,  Rational  Phonograph  Co. 

Grange.  H.  J., 



I  heg  to  acknowledge  receipt  of  your  memorandum  of  tho  4th 
inst.,  reference  #201,  attached  to  Mr.  Graf's  letter  dated  Deo. 19th, 

1906.  having  referenoo  to  a  shipment  of  British  Records  returned  from 
our  Sydney  Office  to  London  for  credit. 

In  order  to  assist  you  in  rendering  a  decision  in  this  matter, 

I  hag  to  submit  the  following  particulars :- 

In  a  recent  letter  received  from  Mr.  V/yper,  he  states  that  he 
has  returned  27,455  records  to  London,  7,600  of  which  were  Vesta  Tilley 
re cords -a  singer  who  had  been  very  largely  advertised  by  our  London  Of¬ 
fice.  On  the  strength  of  this  advertising,  Mr.  TTyper  ordered  a  very 

large  quantity  of  these  records  but  this  particular  singer's  records  fell 
very  flat  in  Australia,  and,  knowing  that  they  enjoyed  a  largo  sale  in 
London,  he  felt  sure  they  could  easily  be  disposed  of. 

In  Mr.  Graf's  letter,  he  statos  he  finds  that  the  majority  of 
the  records  returned  by  Mr.  Ryper  are  no  good  as  sellers  and  that  he  has 
a  good  stook  of  these  himself. 

-  2  ~ 

Jan.  11,  1909. 

Mr.  Frank  1.  Dyer,  (Coat'd.) 

X  have  no  comment  £  to  make  other  than  to  etate  that , 

,  .  n  n-aer  a  little  more  than  5,800 

Hov.  1st,  1908,  we  shipped  oe  Lcndon  a 

of  the  very  titleB  Wyper  is  retarninff^ 

On  London's  order  #10,521,  received  in  Hew  York  Hov.  4th,  08. 
covered  hy  our  requisition  #17,089,  among  other  titles,  London  Office 
orders  1,000  #13,591  -  (Australia  returns  400). 

500  #13,630  -  Australia  returns  300. 

SSBS'SS."  :  ” 

400  #13,603- «■  ■  n  i  OOO 

400  #13,593  -  "  1000 • 

0.  this  particular  order,  London  otter.  12  of  tie  titla.  re¬ 
turn.  A  to  Australis  is  sumter,  ransins  fro.  1»  to  1.000  east,  s  total 

^  On  London's  order  #10.519.  retired  1.  1«  *>*  ««•  °8" 

j  „  nrk  a  total  oT  ”1*050*  and 

our  requisition  #17,087,  London  orders  10  titles,  a 

I  might  go  on  and  refer  to  other  orders  received. 

X  might  state  that,  in  the  past  year,  our  Australian  -Office  has 
ordered  approximately  one  half  million  records  from  London,  and,  in  view 
of  the  fact  that  the  records  Australia  has  returned  seem  to  -  saleable 
titles.  it  would  seem  to  .a  not  to  La  unrs.sonatle  to  onpaot  Hr.  Or.f 
to  renter  a  oradit  for  tie  return  r.o.rd.  at  th.  prio.  paid.  ,i.=  10 
eaoL.  the  last  ardor  eu.out.d  fro.  London  for  Australis  wa. 


Hov.  14th,  1908.  - 

Ln  ,1..  of  tne  atova.  it  seems  Partly  fair  tLst  fc.  «•* 

sLould  erpeot  to  purSLss.r  5,00  of  ««  res.rds  at  0-1/4#  «*.  -  **■ 
pri..,  L  understand,  is  less  tAaa  tto  oo.t  of  produotion  and  only  allow 


Hr.  Frank  L.  Dyer,  f Coat'd.) 

-  3  - 

Jan.  11,  1909. 

oredit  for  the  balance  24,000  as  scrap  was. 

In  the  matter  of  rendering  credit  to  Australia  on  account  of 
exchange  and  cut-out  records  returned  from  Australia,  Hr.  Gilmore  ad¬ 
vised  me  that  our  London  Office  would  follow  the  factory  at  Orange  in 
rendering  oredit  for  return  Material,  and,  as  proof  of:  this  statement, 

1  would  refer  you  to  oredit  rendered  by  our  London  Office  covering  re¬ 
bate  on  British  ReoordB  held  in  stock  at  Sydney  when  the  reduction  in 
jorioe  was  made:  I  would  refer  you  to  our  invoice  #2268,  dated  Feb.  29, 
1908,  copy  of  Tfciich  I  enclose"  herewith,  covering  rebate  on  British  Re¬ 
cords  held  in  stock  June  20,  1907,  in  amount  $6,691.20..  Credit  was 
rendered  at  Brussels  for  this  amount:  I  would  also  refer  you  to  our  in¬ 
voice  #2867  oo ve ring  a  rebate  representing  the  difference  between  14^ 
and  10?f  each  on  records  ea-route  from  Brussels  to  Sydney,  in  anodnt 
$908.00.  Credit  was  rendered  by  the  Factory  at  Orange  oovering  thiB 
claim  and  I  assume  that  the  amount  was  oharged  back  to  London . 

In-as-muoh  as  all  records  were  oharged  to  Sydney  by  our  Lon¬ 
don  Office  at  price  of  lOjf  eaoh  as  late  as  Hovember  of  last  year,  it 
would  seem  unreasonable  for  Hr.  Graf  to  expect  to  only  allow  8-1 /4^ 
for  these  records.  My  understanding  is  that  records  shipped  from 
Orange  to  London  are  sold  on  the  baais  of  f.o.b.  Mew  York,  Mr.  Graf 
being  obliged  to  pay  freight  and  other  expenses;  whereas,  the  records 
returned  from  Australia  were  returned  on  the  basis  of  f.o.b.  London 
Sydney  Offioe  standing  all  return  expenses. 

In  conclusion  would  state  that  I  am  s 

lure  Mr.  Myper  has  no 


desire  to  take  advantage  of  our  London  Office  in  any  way,  but  it  is 
not  unreasonable  for  him  to  expect,  in  view  of  the  business  given  to 
our  London  Office,  that  they  would  render  him  some  assistanoe  in  dis¬ 
posing  of  British  Beoords  wil'toh  were  not  aooeptable  in  Australia. 

I  return,  herewith.  Hr.  Graf's  letter  for  such  attention  as 
you  may  desire  to  give  to  it. 

Youri?  very  truly, 


Manager  .Foreign  Department. 

17S  /  JIB . 

Jan.  11,  1909. 

Mr.  y.  W.  V!y per. 

Manager,  National  Phonograph  Co.  of  Australia,  ltd., 
2.  0.  Box  146,  Sydney,  h.  S.  VI.,  Australia, 

Dear  Sir:- 



BEIDRHED  10  10HD0H. 

I  ioe  to  tend  you,  herewith,  oopy  of  .  oomm.lo.tioo  .ddr....a 
to  our  Iroaldoot,  Mr.  Kyer,  elgned  by  Mr.  graf;  alao  oopj  ot  Mr. 
-«or„do,  to  an  haying  referanoe  t0  tis  sllir»»t  of  27,455  r.oord. 

"Mob  you  rotoroad  for  oredlt  «  .Mob  nurplu.  Britieh  atooM. 

I»  tbl.  ooooeotlon,  I  would  rafor  you  to  your  l.ttar  of  lor. 

5th  to  Mr.  Graf  aud  alao  your  of  Dot.  27th  and  Hoy.  23rd 
to  th.  writer.  I  alao  att.oh  copy  of  v  l.ttor  to  Mr.  Myar. 

It  will,  no  doubt,  surprise  you  to  read  Mr.  grafts  letter,  aa 
it  did  .a;  this,  in  yia„  0f  the  foot. -as  atated  in  my  latter  addre.«d 
to  Sr.  hyer.-that  you  hay.  purohae.d  fro.  London  th.  year,  approrl- 
mataly,  one  half  Milieu  raoorda  „d  on  whioh  it  is  reasonable  to  erpeot 
eo»e  profit  was  hade.  0f  oout,..  we  are  bmmd  .to  that  London 

h«.  allowed  you  some  sub.tantiul  or.dits  in  th.  way  of  granting  rabata, 
on  reduotion  .ado  in  the  price  of  British  Seoorda.  but  th.  olai.  that  Mr 
"**  nahee-regardlng  th.  majority  of  the  raeorda  you  r.tarn  to  hi.-ls 
hardly  born,  out  by  the  faot.  a.  *iy»  in  mf  l.ttor  to  Mr.  lyor.  Hotur- 
lly  Mr.  graf  dooira.  to  Mho  tho  boat  jpM.ibl.  showing  at  the  o»d  of 

Sir,  w.  W.  Wyper ,  (Coat'd.) 

Jan.  11, 


his  fisoal  year,  and  is  vory  loath  to  putting  through  any  credits  that 
he  is  not  obliged  to . 

As  to  the  out coma  of  this  matter,  I  will  advise  you  at  a  later 
date  just  what  the  result  of  my  oorrespondenoe  will  he. 

Yours  very  truly. 

Manager  Foreign  Department. 


eh closures.  (3). 

Jan.  12„ 


Jffir,  C.  E.  Goodwin „ 

o/o  hyon  h  Healy, 

Wabash  &  Adame  St.,  Chicago,  Ill,, 
illy  dear  Mr,  Goodwin:- 

I  have  your  favor  of  the  8th  inat, 8  in  which  you  enclose 
remittance,  §18.50  in  amount,  on  account  of  tablets  recently  forwarded, 
for  which. please  aocept  my  thanks » 

Referring  to  the  second  paragraph  of  your  letter,  would  state 
that  I  regret  to  advise  you  that  I  cannot,  at  this  time,  give  you  any 
definite  information  regarding  the  matter  of  our  obtaining  a  larger  re¬ 
pertoire  of  Chinese  Records.  We  fully  appreciate  the  importance  of  in 
creasing  our  list  of  Chinese  Records,  but,  on  account  of  the  demand  for 
our  products  in  this  Country  and  in  certain  Countries  abroad-where  vra 
are  well  represented,  the  whole  time  of  our  Record  Makers  has  been  en¬ 
tirely  taken  up.  We  are  contemplating,  at  this  time.  Bending  out 
our  people  to  Mexico,  South  America  and  other  foreign  Fields,  and,  in  ^ 
view  of  this  work, -which  has  already  been  mapped  out, -it  will  be  im¬ 
possible  for  us,  for  some  time  at  least,  to  get  into  China. 

1  shall  be  pleased,  however,  to  bring  this  matter  to  the  at¬ 
tention  of  our  people  and  thank  you  for  your  kind  suggestion. 

Yours  very  truly. 

I  have  your  favor  of  See.  29th  in  which  you  refer  to  your 
caoie  order  of  Boa,  “f/oh  -ora ring  a  numfcor  of  films  taken  from  a  list 
oi  tao'.ied  to  Saloo  Beyazteast  3ullst:.n  #23. 

**  iOU‘  letter,  fou  complain  that  your  office  ms  charged 
l;:r  foot  for  t ha  S3  films,  whereas  they  were  advertised  to  he 
cold  at  5/  ur  foot.. 

In  -reify  would  state  that  Sales  Department  Bulletin  #23,  or- 
fact -any  of  thes-.  builewuss  from  Orange,,  have  no  reference  what¬ 
ever  to  the  foreign  businans.  Those  bulletins  are  sent  to  you  along 
./rth  othor  proa  tod  matter  as  issued  hy  the  factory  in  accordance  with 
my  instructions,  and  this  is  done  only  to  keep  you  thoroughly  posted 
with  regard  to  ..natters  in  general.  If  this  list  was  issued  hy  the 
Foreign  Department,  then  it  would  have  been  perfectly  proper  for  you 
to  have  ordered  as  you  did  I  might  state,  however,  for  your  informa¬ 
tion,  that  the  list  of  film*  referred  to  represents  a  stock  which  have 
l‘“  0,rrl*a  ta  s*°‘*  ^  «"•  .«  m„  ft0E  „« 

13  Jan.  1809 

Rg  horns,  etc,  pro-forma 

»r.  W.K.  Stall, 

Oosntpo,  Chihuahua,  Mexico. 
Rear  8ir:- 

W“  haT°  y0Ur  klnd  f^or  of  the  18th  ult.,  in  reply  to 
our  recent  letter. 

We  note  that  you  wish  ue  to  state  whether  we  connlder  the  “True 
.  h0r"  tatt"  «»  bora,  **  ..  OTntl0„d 

cur  letter,  In  reply,  we  heg  to  advise  that  the  "True tone" 
horn  is  a  very  good  horn  hut  we  reconmend  the  metallic  horn.  It 
-e  adopted  hy  our  factory  only  after  a  long  course  of  careful  ex¬ 
perimentation  to  determine  Just  nhat  material  and  **  shape  of 

*l7t  J***  tOSt  EdaPt°d  t0  BiTB  8Uperior  when  used  in  con- 

on  wth  our  phonographs.  Moreover,  you  will  note  that  it  i8 
or  a  very  artistic  and  neat  design.  - 

you  .  **  "0t“  ,6“  ”*  ,hM'  «  »■**■«  «.  or  tss.oo 

"**  *"**  *  g°°d  -lootion  indeed.  Of  Spring  Motor  models 
M  la.  y  *’  'M"*«*1*  “»  »•■«.  xn  order  ttot  tom 

».(  th.  „o.t  of  aoli„„a  ln  0c>wo>  „  ^ 

llb.«f  or  oneloelns  .  „no-ro™a  ln,«oo.  ,miln 

“  *“■*  "  *».  «»**„,.  t^^ortou™ 

inolMM  t»  hontow  ,aulaM 


on  the  invoice,  aa  we  note  from  your  previous  letter  that  you  thought 
of  purchasing  that  number* 

In  reply  to  your  enquiry  for  catalogues  of  Adelina  Patti* e 
pieces,  we  beg  to  advise  that  the  lady  in  question  has  not  had  the 
honor  of  singing  for  the  Edison  phonograph*  We  Bhall  be  glad  to 
oend  you  the  other  catalogues  you  request* 

Thanking  you  for  your  continued  favors  and  trusting  that  we 
may  Boon  have  the  pleasure  of  filling  an  order  for  your  account,  we 
bog  to  remain. 

Yours  very  truly. 

Manager,  foreign  Department i ' 

National  Phonograph  Company  Records 
Foreign  Department  Letterbook  #3 

This  letterbook  covers  the  period  March  16-23,  1909.  It  contains  copies 
of  correspondence  generated  by  and  for  Walter  Stevens,  manager  of  the 
Foreign  Department.  Among  the  correspondents  are  George  M.  Nisbettand  L. 
L.  Lewis  of  the  Mexican  National  Phonograph  Co.  in  Mexico  City;  and  William  W. 
Wyper  of  the  National  Phonograph  Co.  of  Australia,  Ltd.,  in  Sydney.  Also 
included  are  letters  to  customers  and  agents  in  Africa,  Asia,  South  America, 
Europe,  and  the  Caribbean,  as  well  as  to  commission  houses  in  New  York! 
Newark,  and  elsewhere.  Many  of  the  letters  are  in  response  to  inquiries  about 
the  cost  and  supply  of  phonographs,  sound  recordings,  films,  projectors, 
numbering  machines  and  other  Edison  products.  There  are  also  letters  regarding 
indigenous-language  recordings,  national  and  international  tastes  in  music,  and 
the  need  for  fire  precautions  in  motion  picture  exhibition  houses  in  Mexico.  One 
letter  requests  a  sample  of  Australian  bitumen  for  Edison.  Also  included  are 
numerous  routine  letters  acknowledging  orders  and  shipments.  Some  of  the 
letters  are  in  Spanish,  German,  and  French.  The  spine  is  marked  "Foreign  Dep't," 
"154,"  and  "N.P.Co."  The  book  contains  492  numbered  pages  and  an  index 
Less  than  10  percent  of  the  book  has  been  selected. 

MARCH  13-1909 

0.  Pardee, 

Pardee  Ellenberger  Co., 

Hew  Haven,  Ct. 

i.iar  Hr.  Pardee:  — 

Our  Hr.  Xreton  ha.  ^nde^to  rotten  tie, 

addrels'of^one3 of ' our  Jobber,  or  dealers  in 
Calcutta.^'"  - Indian  jobber,  is 

you  the  naine  and  address  ox  . 

Calcutta.  repiy -would  state  ^eVnactivlTdealer1 in  Calcutta , -and 

Ttf-tfoa  »e  very  Elad  to_serjro+you.  ^  giyen  v/ill  meet  your  require- 

-ne  very  glafto  serve  you. 
Trusting  the  information 
,  X  rema-in, 

Manager  foreign  Pep't. 



Mar  oh.  19,  1909. 

Cr..  John  Pelzer, 

-*m«8«r.  iMrtogrwl.  »*..  B.i«»  «*• 


I  am  to  receipt  of  a  communication  from  Hr.  EiBhett.  Manager 

Of  tto  Meric*  Office,  i»  *1*  *>  ■»«*«  «“*•  »»  °f  * 

,lrt™  fire.  *1.1.  .«*«•»  *»  •  ...1  *»  <*>»****  Pl*«. 

1.  0..  of  Cilice,  too  aulCorities  are  x.rf 
stirred  cj>  ccd  are  ecd..xorlaS-l.  •«*»  I”TOt  * 

of  trouble  of  this  kind. 

The  following  is  an  extra ot  from  his  letter 

"There  are  one  or  two  matters 
down  here  which  may  he  of  Sreatim- 
portanoe  to  ub  and  X  was  most  anxious 
to  have  the  instruction  and  guidance 
of  Mr.  Dyer  and  yourself  bb  to  the 
proper  handling  of  Bame.  Bor  dnstanoa, 

I  waB  adviaed  on  Saturday  last  that  a 

ruling  has  haen  made  either  hy  the  Bo-  J 

lioe  Department  or  the  Bederal  Dia triot ,  & 

that  no  Moving  pioture  Machine  would  he 

allowed  in  any  place  ofpuhlicamuae 

ment  other  than  the  lathe .  I  have  not 

„.i  -hB an  able  to  authenticate  thiB  ro.- 

mS  If  it  turne  out  to  he  a  fact  however, 

it^waa  my  intention  to  take  this  matter 

pp  with  a  very  prominent  attorney  in 

t&is  town,  hy  the  name  of  Bar  do,  (who  is 

Mr.  John  Pel! 

{ Cont *  4. ) 

Mar  oh  19,  1909., 

the  president  .-and  «seroises  a  greet 
deal  of  influence  on  this  aooount. 

He  is  also  attorhEgr  for?'the  hig 
Smelting  Crusts  and  bthcir  large  Araerl- 
oan  Syndicates)  and  Request  him  to 
take  such  aotion  qb  Might  be  necessary 
to  oppose  or  oountoraot  , such- legisla¬ 
tion,  and  to  ins 1st; on  ah  aotuul  de¬ 
monstration  of  the  fire-proof  qualities 
of  our  machine,  as  compared  with  the 
Pa the  instruments  and  it  might  he  possible, 
through  his  skilful  handling  that,  by  the 
expenditure  of  a  few  thousand  dollars,  we 
oan  get  our  machine  declared  as  the  standard, 
thus  putting  the  shoe  on  the  other  foot. 

Of  oourse  I  do  not  know  how  far  yon  may  bo 
willing  that  I  should  go  in  -this  matter,  but 
it  Beams  to  me  that  it  would  be  a  bad  busi¬ 
ness  proposition  to  knuokle  down  to  any  suoh 
ruling  without  a  strenuous  effort  owing  to 
the  disastrous  effeot  it  would  have  on  busi¬ 
ness  of  the  Edison  Kfg.  Co,  throughout  the 
rest  of  the  Republic;  and  all  other  latin- 
Amerioan  countries,  I  wish  you  would  send 
me  all  documents  you  possibly  oan,  bearing 
on  this  subjeot,  such.  £s  oopies  of  the  cer¬ 
tificates,  if  any,  granted  by  the  ffire  De¬ 
partment  of  the  large  cities  in  the  States, 
and  similar  documents  from  the  local  Board 
of  Underwriters ,  eto.  I  of  course  will 
keep  you  as  fully  advised  on  this  subject 
as  possible." 

With  reference  to  the  above,  1  should  he  pleased  to  have  yon 
give  me  all  the  information  you  have  in  the  form  of  dooumente  from  the 
local  Board  of  Underwriters,  Eire  Department,  eto, 

I  cannot  but  feel  that  Mr,  Hiebett  is  unnecessarily  alarmed 
and  my  understanding  has  always  been  that  our  Einetosoopes  were  vastlj 
superior  to  the  Pathe ,  so  far  as  Bafety  ip  oon<jernea, 

Any  information  that  yon  oan  give  *hi<»h  will  assist  Mr, 



- OPBS. 

T  „  **aiio  amuee- 

*“*  °f  this  that  thSre  DUSt  *  °°»e  ffllataiQ 

*■*•  a„ie;  rraiy  -*«*«  *«  * m- 

6»r  of  fij.e  ^  that  ia  bettor  eoui*  *  1  aot  a  plo“ 

.  ‘  ~  “““•  «  to  fef 'ri  ll'0  ““»*•  «■«  *«- 

4a„  ^tot,^ 

“  *“*  b.  that  thrt^^1*  h8VS  *+>'**«*  °omeotlona 

:: tirt t.  „a,  *7^  *• ** «» c;  zt°- 

—  ZlZL"  “*  “**“  -  - 

««.  oto  88  "*d*  br  *>“  *MM  Of  M  SS*  «»  w*»- 

-  “4‘  -  -  -  X  «J “*• 

111  tie  necessary  Information  j  j 

Hr.  George 

Bishett,  (Cont'd.) 

March  19*  1909, 

will  oOmmunioate  with  you  again. 

Under  the  airoumstanoes  ,  I  hardly  think  it  wsuld  he  advisable, 
if  such  a  ruling  had  heen  made,  to  take  immediate  steps  to  fight  the 
matter:  It  might  be  well,  however,  td  Obtain  all  the  information  possible 
and,  upon  receipt  of  Buoh  information  from  you,  I  rill  then  go  into  the 
matter  very  thoroughly  with  Mr,  Dyer  and  he  will  then  suggest  what  is 
best  to  do. 

Very  truly  yours,  # 

J.4.C  •  / 

Manager  foreign  Department, 


Mr‘  A.  L.  Crook. 

March  19,  1909> 

-Dear  sir;- 

100  -anloague,  Maaila,  p,  x., 


ln  — »» «ii .  ZT "  wr  «-  «- 

»««»»«  aau, plMS>  ^  ”“U“S'  of  4»^  .  i«* 

“  r,tr— «*»  -,.to  ~  *•  m  to  °°* 

We  0811  assure  you  w e  *,,, 

*«  *  t«  a«a  tor  t*e  s  J  07'8<,ISts  tJ“  f‘rt  «-  «■•  -u. 
"*  «*»•  f  ,4reM  °f  **»“•“.  “4.  *.  to 

ale®  basia  y<mr  kind  offer  oa  a  salary  „  * 

~  -  -  -  -  -  errr- 

°°T”.  «  leToTir  S“““a7°'*'  “3Br  ”*»*"“•  toStoter.d  ^ 

””  tote.,  B.cord  llsts  ^  tra°*  “*»■  “*  “toXoOTe.,  ^  . 

^ucnJZZ 'ZnZT  “ 

»«  «*  •  Ie«l„,  er„ttos  7m  iUoomtl  *0  “t—1‘ 

It  Will  afford  us  m  Closed  disoouat  sheet. 

—  «r  throneh 

if  favored,  0ur  best  at*  4-,  *  Conmlssioa  House,  aad, 

•  —H«  ^0r' 

tooili)  iedne 


Mr.  A.  L,  Crook,  (cont’d.) 

Hardh  19,  l909« 

and  carefhlly  executing  your  orders. 

We  shall  also  he  pleased  to  allow  you  an  additional  2 £  dis¬ 
count  for  cash,  if  our  invoice  is  paid  within  10  days  from  the  invoice 
date . 

We  deliver  goods  f.o.b.  vessel  this  port,  no  Charge  for  pack¬ 

Hoping  to  have  the  pleasure  of  serving  you  and  thanking  you 
for  your  kind  inquiry,  we  beg  to  remain. 

Very  truly  yours. 

Manager  Foreign  Department. 


E.  S:-  We  would  also  call  your  attention  to 

the  recent  reduction  we  made  in  the  price  t 

of  our  Standard  Records , _for  your  terri-  J 

tory,  from  36^  ©a;  e6#  list.  j; 

liar  cih.  19,  1909. 

tMh '&**$*>■ 


i  Tssax 

f  jgk  ,  s%aint5"  i  - 

tr  r* 

i  anoi*aesaift» 
fSaob  4w  ,9crld 


KaWa  ti£*lw 

fA-  O^l^gjy 


We  bag  to  acknowledge  receipt  of  your  esteemed  favor  of  the 
5th  ulto.  advising  that  you  have  recently  taken  up  the  sale  of  our  ap¬ 
paratus  in  your  territory,  and  are  anxious  that  wa  should  supply  a  num¬ 
ber  of  Mcipri  Records. 

In  reply,  TOUia  state  that  our  method  of  producing  our  latest 
improved  reoords  is  such  that  it  would  be  impossible  for  us  to  make  use 
of  any  Maori  Master  Reoords  which  you  might  take.  we  appreciate 

that  it  would  prove  advantageous  both  to  you  and  ua,  if  we  were  in  a 
position  to  supply  a  number  of  these  particular  records,  but  the  only 
waybthia  oould  be  -done  would  be  for  us  to  send  our  Recording  Experts  to 
your  territory  to  do  this  work;  However,  in  view  of  the  enormous  amount 
of  work  we  have  on  hand -producing  different  records,  it  will  be  impossible 
for  ua  to  send  our  Experts  into  your  territory  for  this  work; 

Ue  might  state  that  our  reoords-as  now  eupplied-are  originally 
produced  on  apeoial  Master  Blanks,  and  any  reoords,  which  you  might  send 
us,  would  be  of  no  use  to  us  Whatsoever,  as  it  would  be  impossible  for 
us  to  manufacture -from  the  Masters  you  may  supply  us-new  reoords.  i 

<a  Mercip.16^  1909 

1  i  -  1,  \ 

Mr.  Jacques  Albert, 

Messrs.  Albert  &  Son, 

137-139  King  St.,  : 

My  dear  Mr.  Albert:- 

I  have  year  esteemed  favor  of  the;*  1st  nl to. ,  'ikna “it s  need-  **_ 
less  to  state  that  1  was  very  glad  to  reoeivb  your  ofiHpB%i«gti'en ,  al—  \ 
though  it  was  a  source  of  regret  "to  me  to  learn  that?  on«iaoq:puM£,  of  % 

S  V  V\  9 

conditions  as  existing,  your  esteSined  house  found  it  neoessary  tjp  diB-» 
oontinue  the  sale  of  our  apparatuses  your  territory,  u  ,,,  f 

with  rafsrSBee  to  the  difficulty  experienced  with  our  Aus¬ 
tralian  Office,  1  am  sure  you  will  appreciate  that,  vhen  our  Mr.  Wyper 
was  placed  in  charge  Of  the  Australian  Office,  he  was  appointed  to  that 
position  solely  on  his  merits. 

MT.  Wyper  was  a  personal  friend  of  mine,  and  I  have  .known  him 
intimately  for  years;  our  associations  were  oIosb,  and,  without  hesita¬ 
tion,  I  oan  say  that  he  was  one  of  the  beBt  friends  2  war  had,  in  a 
business  way,  his  connections  were  of  the  very  best,  and  he  brought  with 
him  testimonials  of  the  highest  character,  and  we  considered  ourselves 
very  fortunate  indeed  in  scouring  so  excellent  a  man  to  represent  us  in 
the  important  work  to  which  he  was  assigned.  It  As  the  policy  of  our 
Company,  when  they  are  satisfied  with  a  man*s  character  and  ability,  to 

Mr.  Jacques  Albert,  (Cont'd.l 

Marcih  16,  1909. 

Place  implicit  confidence  in  him,  when  he  is  appointed  to  fill  an  im¬ 
portant  position,  and,  when  foreign  Representatives  are  appointed,  com¬ 
plete  authority  is  given  them  and  they  are  supported  in  every  possible 
way  by  our  several  people. 

That  there  should  have  been  any  misunderstanding  between  your 
good  selves  and  ilr,  Wyper  has  been  the  source  of  deep  regret  to  me,  in 
view  of  paBt  associations,  but,  knowing  Mr,  Wyper-as  I  do-to  be  a  man 
of  rare  taot  and  pleasing  personality,  I  oannot  understand  why  you  should 
have  experienced  the  slightest  difficulty  in  your  business  dealings  with 

There  is  nothing  further  that  I  can  say  in  this  matter,  other 
than  to  again  express  regret  that  you  have  found  it  necessary  to  -  discon¬ 
tinue  your  business  relations  with  our  Company  in  Sydney,  Australia. 

I  am  very  glad  to  know  that  your  son  and  his  family  will 
favor  us  with  a  visit  the  early  part  of  next  year,  and  also  to  learn 
that,  the  year  following,  yourself  and  wife  will  favor  us  with  a  visit. 

It  is  needless  to  state  that  I  shell  anticipate  the  pleasure  of  seeing 
your  son  and  his  family,  also  your  good  self  and  wife,  during  your  stay 
in  Hew  York. 

■yesterday,  I  revived  a  oopy  of  your  hook  entitled  "Rational 
Health" ,  and  I  oan  assure  you  tfiat,  at  the  earliest  opportunity,  I  shall 
take  pleasure  in  perusing  very  oorefullp- .the  o entente  of  -this  valuable 
book.  I  am  sure  I  Bhall  be  greatly  benefited"^  ao  doing,  and  I  desire 
to  thank  you  for  your  thoughtfulness  in  sending  me  a'  xjopy  of  this  val¬ 
uable  book. 

Mr.  Jacques  Albert,  (Coat’d,) 

Mardh  16,  1909. 

I  am  pleased  to  advise  you  that  my  family  and  self  are,  at 
the  present,  enjoying  very  exoellent  health,  and  1  trust  that  this  commun¬ 
ication  will  find  you  and  yours  in  a  !j.ike  condition. 

With  kind  regards,  and  wishing  to  he  remembered  to  your  good 
people,  I  beg  to  remain,  I 

Sincerely  yours. 


Nat.  Phono.  Co 

for  yonr  information  would  state  that  practically  ai: 
shipped  ;o  us  hy  tbs  factory  in  carload  lots.  Shipmi 
Lii;.y  examined  whe-i  they  are  placed  invthe  car,  and  the 
the  regular  manner.  In  addition  to  this  precaution,  > 
:>v«d  a  number  of  special  locks,  and  after  the  car  is  si 
special  locks  are  placed  on  the  oar,  and  are  not  reio’ 
car  reaches  its  destination.  The  shipments  are  the] 
in  carload  lots,  and  delivered  alongside  the  Steamshij 
it ur ally  after  these  shipments  are  delivered  to  che  Sti 
ns ibility  ceases. 

.  The  Steamship  Company's  Agent  in  this  city  reported  ■ 
it  shipment,  a  phonograph  had  been  removed  from  the  cai 
ase  was  then  filled  with  liay.  You  can  appreciate  that 
Dgraph  had  been  taken  out  of  the  oasr  prior  to  its  del: 
aamship  Pier,  our  people  would  certainly  have  discovert 
phonograph  had  been  abstracted,  on  account  of  the  weigl 
se.  Naturally  the  Steamship  Company  try  to  evade  tl 

Llity  for  the  safe  delivery  of  shipments,  they  claiminj 
poods  are  stolen  prior  to  delivery  to  them.  The  Stas 
any  are  bound  to  assume  this  responsibility,  in  view  oi 
ihut  they  give  us  a  clean  Bill  of  Lading,  and  there  is 
Y  you  should  not  place  claim  on  them  for  any  shortage  v 
If,  however,  yon  find  it  impossible  to  collect  from  tl 
e  necessary  then  for  your  office  to  assume  the  loss,  as 
isistently  ask  the  factory  to  make  good  shortages.  Of 
i  a  matter  of  defective  material,-  that  is  another  cue s 
i  you  at  any  time  receive  defective  goods,  it  will  be  j 
jper  for  you  to  place  claim  upon  us,  and  we  in  turn  v/i] 
endeavor  to  have  the  factory  entertain  such  claim. 

National  Phonograph  Company  Records 
Foreign  Department  Letterbook  #4 

This  letterbook  covers  the  period  September  1 91 0-March  1911.  It  contains 
copies  of  correspondence  generated  by  Walter  Stevens,  manager  of  the  Foreign 
Department,  and  by  Louis  Reichert,  his  assistant  manager.  Among  the 
correspondents  are  Thomas  J.  Kennedy,  resident  manager  of  the  Compania 
Edison  Hispano  Americana  in  Buenos  Aires,  and  William  G.  Bee,  manager  of 
sales  for  the  Edison  Storage  Battery  Co.  Also  included  are  letters  to  Agar,  Cross 
&  Co.  in  Argentina;  W.  R.  Grace  &  Co.  in  Peru;  and  other  potential  agents  and 
customers  in  Africa,  Asia,  South  America,  Europe,  and  the  Caribbean.  Except 
for  one  letter  relating  to  kinetoscope  motors,  all  of  the  correspondence  pertains 
to  the  sale  of  Edison  storage  batteries.  Included  are  letters  introducing  the 
product  line,  acknowledging  or  checking  on  orders,  and  responding  to  inquiries. 
Some  of  the  letters  contain  references  to  the  Lansden  Co.,  Anderson  Carriage 
Co.,  and  S.  R.  Bailey  &  Co.,  which  used  Edison  storage  batteries  in  their  electric 
vehicles.  There  are  also  references  to  the  Federal  Storage  Battery  Car  Co.  and 
Electric  Omnibus  and  Truck  Co.,  manufacturers  of  trolleys  and  omnibuses,  and 
to  the  Electric  Launch  Co.,  which  manufactured  motor  boats  equipped  with 
Edison  storage  batteries.  Some  of  the  letters  are  in  Spanish,  German,  and 
French.  The  spine  is  stamped  "Letters"  and  "Foreign  Dept"  and  is  labeled 
"Storage  Battery,"  "1 ,"  and  "September  1 6, 1 91 0  To  March  1 0, 1 91 1 ."  The  book 
contains  499  numbered  pages  and  an  index.  Less  than  10  percent  of  the  book 
has  been  selected. 

Manuel  Caragol  f-  Son, 

We  beg  to  acknowledge  receipt  ofyra  favor  of  the  7th  Inst.,  In  wh 
;hat  yon  hare  forwarded  a  copy  of  our  ca  talogae  to  Bxorno.  Qr.Oondo  d. 

Tn  accordance  with  your  request,  wo  take  pleasure  In  forwarding  add 
if  our  catalogue  and  descriptive  matter,  to  the  above  gentleman, 

tQ  the  sale  of  Edison  Storage  Batteries  in  foreign  c 

.d  state  that  we  are  at  the  present  time  in  correspondence  wi,th  a  party  -n  -Barco 
t>  Spain,  Who,  we  believe,  is  fully  qualified  to  represent  ua  in  that  oountry. 

irfM  state,  however,  for  your  information,  that  there  arc  a  number  of  foreign 
wMoh  are  not  reproe anted,  and  if  you  will  kindly  advise  ue  as  to  the  t* 

iutilro  to  cover,  vn  should  bo  pleased  to  inform  you  Whether  or  we  arc  rep  re 
,  the  territory  you  mention.  Wo  might  also  say  that  ,m  do  not  grant  the  ootclut 
of  these  Battsrioe  to- anyone,  hut  whore  u  fin.  elgnifiee  thttir  intention  of  taking 
,o  sale  of  the  Battery  i«  h  largo  way,  ah*  use  every  «*W*  to  advance  the  sale 
wo  are  wliU**  to  protect  them  by  referring  in.uirlos  orders  received  di~ 
...  _  „ . j  n,r  ,mdo,  Bland  that  1*  would  bo  impossible  for  us  to  gi 

Messrs.  John  Pal-laer  Jr, 

Finsbury  Court,,  Ipinsbury  Pavement, 

London,  E,  C, ,  England. 

Your  esteemed [  favor.,  of  the  i£th  ulto.,  addressed 
Storage  Battery' Dos, ,  Orange,  N.  J* ,  has  been  referred 

to  the  Edison  Storage  Ea-ti.sry'Ook ,  Oxfcn 
to  the  Export  Department  for  attention. 

In  ^Ply  wotild  state  thdt  at  this  writing  we  are  not  in 
position  to  give  you  any  definite  itifoMriation  regarding  the  sale  of 
the  Edison  Batteries  iii  ErtglaHd*  ah  our  plans  have  hot  as  yet  been 
perfected  Covering  the  hale  of  these  batteries  in  Great  Britain. 

we  thkh  pleasure  in  advising*  however,  that  We  are  in 
position  to  accept  and  execute  orders  for  the  Edison  Batteries  for 
Shipment  to  India*  and  we  are  sending  you  under  separate  cover,  our 
latest  Price  Lists  and  Catalogues  Which  you  will  find  descriptive  of 
Storage  Battery*  By  referring  thereto  you  will  note  that 
these  oat ter is s  can  be  successfully  used  in  connection  with  motor 
vehicles,  also  for  sparking  and  ignition  purposes.  The  prices  of 
these  batteries  are  as  shown  in  catalogue,  and  on  any  orders  receiv¬ 
ed  for  shipment  to  India,  we  would  be  pleased  to  allow  our  maximum 
discount;  viz*,  20^6  thereon. 

As  the  EdiBOn  Storage  Battery  Company  is  obliged  to  pay 
Mr.  Edison  royalties  on  all  batteries  shipped  into  India,  it  will 
be  necessary  for  you  to  add  to  the  net  amount  of  the  invoice,  after 
discount  hue  been  deducted*  BO  Cents  per  cell  for  A— 4  cell;  90 
cents  par  oell  fop  A **tS  cell,  and  $1,20  per  cell  for  A— c  cell,  end 
the  same  proportion  for  other  types. 

In  reference  to  pleasure  and  commercial  motor  oars 
equipped  with  Edison  Batteries,  if  you  will  kindly  communicate  with 
B,  R,  Bailpy  &  Co,,  <Ameabury,  Mass.,  The  Anderson  Carriage  Co,,  Detroit 
Michigan, or  the  lanaden  Co*,  Newark,  IT.  J, ,  they  v/ill  be  Dl eased  to 
send  you  catalogues  descriptive  of  their  electric  vehicles.  The 
two  former,  manufacture  pleasure  vehicles,  and  the  latter,  large 
electric  truoks  used  for  commercial  purposes. 

We  thah|c  you  for  your  kind  inquiry,  and  can  assure  you  it 
will  afford  us  pleasure  to  receive  and  execute  your  order  for  any 
number  of  Edison  you  may  require!,  for  shipment  tn  India, 

Xaure  very  truly  9  i 

Manager,  foreign  hep ' t. 


The  Anderson  Carriage  Co,  „ 
Detroit,  Mich. 

Gentl  amenS— 

We  are  in  receipt  of  a  communication  fra«pMr. 
Arturo  Landa*  Paaeo  do- Gracia  96,  Barcelona,  Spain,  and  we  expert 
to  arrange  with  Mr.  Lana*  to  have  him  take  up  the  sale  of  our  Storage 
Batteries  in  Spain  in  a  large  way. 

He  is  very  anxious  to  take  up  the  sale  of  your  vehicles 
in  connection  with  our  "batteries,  and  we  have  advised  him  that  we 
would  communicate  with  you  asking  that  you  grant  him  the  sale  of 
ydur  Vdhioles  in  his  territory.  If  you  are  inclined  to  do  so, 
we  would  "be  pleased  to  have  you  communicate  with  Mr.  Landa,  and 
we  trust  that  "business  relations  may  "be  estaliBAshed  "between  you. 

We  might  stat6,  however,  that  we  know  nothing  whatever 
about  Mr.  Landa' s  capabilities,  nor  are  we  conversant  with'biB  finan¬ 
cial  standing,  and  wa  are,-  therefore,  not  in  position  to  give  you 
any  definite  information  regarding  sane.  Our  Terms  with  Mr.  Landa 
for  the  present  at  least,  will  he  Cash  with  Order  on  all  business 
done  with  him,  unless  he  furnishes  us- wiih  unquestionable  refer¬ 
ences.  We  have  applied  to  the  Commercial  Agencies  for  a 

report,  but  as  yet  same  has  not  reached  us. 

Mr.  Landa  seems  vary  much  interested,  and  we  believe 
intends  to  take  up  the  sale  of  our  batteries  in  a  serious  way. 

So  long  as  he  gives  us  an  amount  of  business  Which  we  deem  ample  to 
meet  the  requirements  of  the  Trade  in  his  territory,  we  shall  con- 
oinue  relations  with  him. 

We  trust  that  ypu  will  communicate  with  Mi,  Landa,  and 
advise  him  whether  you  are  inclined  to  -do  business  with  him,  or 

Thanking  you  in  advance  for  your  kind  attention,  we  re¬ 

Yows  very  truly, 

Manage?,  Foreign 


Newark,  H.  J. 


Sept*  20-1910* 

:  Storage 

I,anda  to  havs  -Jllm  taka  UP  the  sale  of  c 
Batteries  in  a  large  way  in  Spain. 

He  is  very  anxious  to  taka  up  the  sale  of  your  vehicles 
in  connection  with  our  batteries,  and  we  have  advised  him  that  we 
would  comnunicate  with  you  asking  that  you  grant  him  the  sale  of 
^ULV^iSld8,1^h^,teiiVitory'  Xi  you  inclined  to  do  so, 
we  would  be  pleased  to  have  you  communicate  with  Mr,  Landa  and 
we  trust  that  business  relations  may  be  established  between  you* 

About  T  ■ n^?ht  3taif-,’.??WeT0r*  that  we  know  nothing  whatever 
about  «r  land a'e  capabilities,  nor  are  we  conversant  with  his  finan- 
f1*1  vf  are.  therefore,  not  in  position  to  give  you 
any  definite  information  regarding  same.  Our  lerma  with  Mr*  Landa 
anL''hf*£I‘v?0nt  l9a,st*  w111  he  Cash  with  Order  on  all  business 
cesS  ,lth  him>  unless  hs  furnishes  us  with  unquestionable  reihren- 

We  have  applied  for  a  report  to  the  Commercial  Agencies 
out  as  yet  same  has  not  been  received.  * 

Mr.  Landa  seems  very  much  interested  and  we  believe  in¬ 
tends  to  take  up  the  sale  of  our  batteries  in  a  very  serious  way.  ’ 

So  long  as  he  gives  an  amount  of  business  which  we  deem 
ample  for  the  trades’  requirements  in  his  territory,  we  shall  be 
pleased  to  continue  business  relations  with  him. 

We  trust  that  you  will  communicate  with  Mr.  Landa  and 
advise  him  whether  you  are  inclined  to  do  business  with  him  or  not. 

Shanking  you  in  advance  for  your  kind  attention,  we  re¬ 

Yours  very  truly. 

Manner.  Foreign  Department. 


!7a  bolieve  that  the  plan  as  outlined  in  your  lottor,  namely,  that  lnmediato 
ycv.r  Company  is  organized,,  you  purchase  a  number  of  Batteries,  rlso  elootrio  vohioleo 
and  begin  an  active  campaign  throughout  Nov  Zealand,  introduce  and  advertise  the  Bat¬ 
teries  und  also  to  procure  business,  is  a  good  one;  and  it  is  needless  to  stato  tiiat 
no  shall  be  pleasod  to  rnceivo  and  oxuouto  any  orders  forwarder  to  us,  assuring  you  t 
prompt  and  oaroful  attention  will  be  given  to  the  matter  of  shipment. 

Terraat  A;-  our  tarns  aro  invariably  cash  with  order,  we  should  be  pleased  t 
nave  you:  arrange  a  credit  in  Tier  York,  agai?ist  which  v:e  coicld  draw  draft  against  docu 
nents.  By  doing  this,  it  would  enable  you  to  take  advantage  of  our  25?  oash  discount, 
vh’ch  we  allow  provided  cash  accompanies  the  order;  or,  if  your  prefer,  you  can  pur¬ 
chase  a  draft  on  Now  York  through  your  local  bank,  sending  us  remittance  with  the  crdi 
cr  in  the  event  of  your  cabling,  you  could  arrange  to  cable  remittance  to  us. 

Cable:  In  accordance  with  the  suggestion  as  contained  in  your  letter,  v/e 
ire  cabling  you  as  follows: — 


BftrCOlCHE,  s spoil IBa 

•  B»  0.  Ao»  gaptlembre  19  de  191 C 

EUy  3r.  naastro:- 

Han  place  acuoarlo  racito  ds  so.  cuy  stents  carta  dal  20  del  parade  nes,  en  la  quo 
T.  acmes  raeldo  do  la  nnestra  del  2?  de  Julio,  Con  gusto  notamoa  que  V,  acepte  nncatn 
propoelclfiu,  referente  a  enviar  a  V«  tedae  las  solioltudea  quo  reclbeooa  do  oae  territo- 
rio  con  tal  quo  se  refleren  £  la  Hateria  Edison  ds  Acumlaelfin.  Deseaaoa  darle  las  rfc, 
orpreelTaa  grades  par  la  prerasa  que  noo  hace  do  cue  barn  todcs  los  eefncrr.oe  pooitlee 
para  lograr  an  gran  nogoclo  on  as  terrltcrio  ccn  la  Tent*  de  eate  taterla.  satanoo  se~ 
guroa  da  que  oi  sate  naeccio  ae  tup  rondo  do  qua  oanera  aerie  bus  eafuerzos  tendrln  gran 

VHHictacs  m  wscri 

Beapeote  5  quo  la  lanaden  Co.,  In  Andersen  Carriage  Co.,  y  la  3.  H.  Bailey  Co.,  le 
oanoadan  4  y.  la  rente  de  sus  ve'nlculca  el4ctrloOs  on  Kapafiaj  manlXeet&noolo  que  tendre- 
a»e  nuobo  gusto  en  poneraos  en  ccwmlcaoi&a  ccn.  dlobes  aoppeEleo  y  los  rogwecoa  cue  le 
CQAaodan  £  v.  ia  repreeentaolon  de  aus  vehfouloa  en  Sepafte,  el  fuere  pocllilc  el  quo  la 
pudieren  eonoeder*  y  aonflaooa  quo  lea  sera  po  Bible  el  ha  cor  lod  axxeglos  neoeearioa  ooc 


Tendremoe  tmcho  gusto  en  mendarle  dontro  de  pooo  un  aleetrotlpo  del  Hr,  Edison 
para  quo  lo  U8e_eu  an  catfilogo,  y  tttnbiin  oleotrotlpoe  de  naeatroe  dlfarentee  tipoe  df 


fitt*  oatdjfttaos  da  lc  que  its;  sica  tfaspeeto  u  uae  60jusxti>a  quo  xeaxbii 
al  tiao  do  l&a  Bat  arias  Edison  da  Aoumlaolin  don  loooaotoxaa,  y  yarn  su  gobieruo  B«ni“ 
featfimoslo  quo  no  podsaoa  xeoomeiiany  aueotro  tipo  actual  do  Baterta  para  oor  usodo  on 
aonaxl&a  con  iooomotoraa;  pero  ol  3r„  Edison  festfi  ehora  txobajaado  on  rms  gatcrla  o5b 
Srenfet  if  tan  pronto  teagaaos  algo  defluido  quo  oomanloar  reapocto  a  6so,  tendremos 
gusto  en  paxtlciparoelo,  I &  pila  nae  grande  quo  suadniotraaoa  nhoxa  as  ol  tipo 

»A"-8*  liotdde.  en  $26  >,00. 


Bos  entorscos  tacbien  <le  lo  que  non  aoauniea  tooonto  6.  una  solioltuu  rospsctc 
a  trsnrlss  oliotriooa,  y  eatamca  dendo  a  eats  asunto  nueatra  ateacifo  y  nos  pondre’- 
moo  on  ooBstnioaei 6n  con  7„  an  fesiia  asSa  tardo,  sobre  eao,  puao  para  entonaes  le  daxe- 
a*oa  lnfontaoiSn  caspleta, 

Bospondiendo  a  su  progunta,  aanifestfefflsle  que  ol  peso  del  3iectr6llto  eats  in- 
oluido  oon  los  otroo  cleffientos  oontenidoa  an  laa  pilaec 

Con  gusto  Infoccauspole  quo  la  But  ex  la  Edison  do  Aoaaalaol&i  sate  plenamenta 
rerjl3trsda  y  proteglda  pox  patentee,  y  debldaeentq  reglatrada  en  Sapafia;  pox  lo 
tanto„  cocprendora  y.  que  no  bay  peligro  do  que  nuestroc  intexesea  eufran  da  leaner® 
alcana  pox  tal  conaopto. 



I,ob  pxooloe  de  oatSlogo  de  laa  Baterlaa  Edison  ectia  3afialndoe  en  nuestrea  oat£- 
logoe,  y  on  viqta  de  los  or  region  qua  henos  iieoho  con  V.,  tendroooa  guato  en  -.'.ancederle 
nuestxo  deoouentp  Ultimo,  L  saber,  el  20#  dal  preaio  aoftalede  on  nqeotroa  catalogoa,  y 
el  el  dlnaro  vinlere  oon  el  pedldo,  le  conoaderiamos  ua  descaento  adloloaal  de  2#  por 
pogo  al  oontado,  ouyo  deocuento  taiabien  se  lo  oonoodarlemoo  si  V*  abrllae  an  oxldlto 
en  Hueve  Yorfc  contra  el  quo  pudlerwnos  gixa r.  C&ao  nada  aboolut ament e  aabeaoa  xes- 

papto  &  eu  reoponBabllldad  Unanolora,  rog&nosle  que  ten@i  la  bondad  de  exniarnoa 
x omasa  cubrlendo  aus  pedldon,  5  ol  aol  lo  preflriSse,  d«no«  referonolaa  reqpeoto 
k  an,  raaponsabllldad  financiera;  dfindonoa  4ao  eatlofaoerla  los  roquleltos  y  el 

ml  iuwstlgor  eneoKtrAmta  qua  eats  t.  eon  dt/eete  S  oredttc  utjteroin,,  ieneMstoi*  gO*it 
en  ejeoatar  ana  pedldos,  eoucedl  Indole  un  plaso  de  trolntu  dies  &  conta r'dt  le  fedtc  de 
la  factura. 


Con  ornno  gusto  envlarfimosle  ooa  oada  embarque  una  cantidad  literal  de  net ei-la  is>- 
preaa,  y  oon  an  primer  pedido  envlaremoslo  taabl6n  un  model o  do  dlforefltee-  tipos  de 
naeatrae  pll&s,  quo  podrfi  7*  uaar  para  fines  de  exhibiolon.  Con  referenda  6  ouadnie- 
trtd*  Bat  or  fee  para  los  colegion;  ob  Sate  nil  cerunto  qua  Oebe  7.  zenjar,  puss  noaotros  no 
eetarfamon  en  posici&a  de  auninlatrar  6  esOa  diferonter  cologios  nueefraa  bateriaa,  fi 
preeio  raenor  qus  el  de  oatlilogo, 


Enoraotrara  Y,  on  maestro  catalogs  titulado  "The  Edison  Storage  Battery"  (La  B=te- 
rla  Edison  de  Aotanulaoioa) ,  inforcacion  may  util  y  dates  considerables,  y  por  aeparado 
eatenoD  envlaadole  trarlo  j  iagraaas  tecnicos,  one  le  darfin  atfin  mas  iafonnaclfinj  el  cual~ 
quiera  ves  suxgieae  algfii-;  cueati^s  que  no  fnera  7,  coupe tente  para  resolver,  tendrfa- 
ffios  nmusho  gusto  en  d&rle  la  Info rmac ion  neceearia,  ai  lo  oenstites  7^4  nnaotre  s*ud- 

Reepecto  £  la  acluclfin  de  potass,  maaifentamoele  qne  reoocendamoe  el  ueo  de  nuestre- 
prodwtos  pern  tafia  tsrde  pueda  ear  que  arreglcmos  el  enviarla  en  forma  de  orietal. 

Benpeoto  d  la  reoarga  de  lao  Bateriaa;  los  aparatos  neceaarioa  para  la  reoarga  pne~ 
dep  aer  obtenidoa  de  cnalquiero  casa  de  efeotos  elfiotricos  de  oonfisnna,  y  no  debe 
perinentar  r,  dificaltad  alguna  en  obtenerloa, 


Beapeoto  i  eete  aaunto  manifeotfimoale  que  en  loa  Eatados  ttaldoe  gerantiaamoa  nueotowi 
bateriaa  oomo  sigue:  Para  vehiouloo  oomeroialee,  tres  afica;  para  lgnlolfia  4  otro  tra- 
bajo,  a  in  oo  aEoa;  pe»  aeria  ispoaible  el  que  nosotroa  difiramos  una  garentfa  aobre  naeo- 
txaa  bateriaa  para  paieea  extranjeroe,  £  no  aer  la  gar  ant  ia  da  que  aon  meoanio^wnte  per- 
feoiae,  pues  no  eatamos  en  posiolfin  de  nab?*  q«e  trataudento  reoibirlsa  6  an  qpe  oondi- 
oioneo  sarian  used  as. 



Hotamos  qua  deaea  V.  quo  lo  aandemoo  «na  dr  c.vla  non  do  las  Pilao  Tipo  A«4»  A*6t 
A“3;  y  ana  Batorla  B-4  do  5  piles,  y  ana  Tipo  is- .  de  7  pilao,  cpmpleta,  inoltjycndo  el 
qparato  da  llenarlan.  Incluirao  aqu£  un  preeupueeto  quo  denote  el  ooeto  de  laa  ale- 
uffiSy  y  oomo  ya  le  hfinjoa  arloado  que  nuoatraa  condlolones  requleren  el  dlnoro  oon  el 
pedido,  ccnelderarfamoa  nn  favor  el  qae  7»  tuvlere  a  Men  enviaimco  romeea  pera  dubrir 
el  valor  de  eeta  factor* „  lnolueo  loa  gastOa  de  transports,  y  tan  pronto  reclbwnos  an 
tamo  tic,  derenjoa  al  denemperio  de  an  pedldo  nweatra  mejor  atenciSn. 

Heapondlendo  i  sue  divereao  preguxrtas  ccatenldee  on  ea  oarta  de  Agosto  34,  noa 
pormitlmos  somater  fi  V,  It  eigclente  Infortrecicn:- 

(1)  P,  -  {A  qu€  voltage  n&zdiao  por  pile  dehe  pararoe  la  cares  con  corriente 

~  Hosotroa  oargamos  enterozoante  por  eepere -boron,. 

(Z'j  ?„  -  En  noeatro  oatllogo  deciaos  que  la  daraci&a  de  la  caxgs  pnedo  varlar- 
se  a  voluntadi  la  potenoia  xada  alta  poaible  ac  obtendri  con  nna  oaiga 
.  do  dies  horas. 

2E>  -  Hanta  a  aieto  boros  a  nusfin  de  cares  noitsl  la  efleaoia  es  loarewp  de 
aiete  a  dies  horns  la  oapaoldad  oomenta;  pero  la  eficaoio  si  s«  «»•■■■ 

(3i  P„  ~/S n  one  m£nlt»  de  tienpo  imede  oargarae  ana  batorla  aim  dalterae? 

-Hire  la  curse  Ho .9  (lnclaaa).  Cinco  boras  t tempo  ndnlco  para  ana 
csrga  nornal  carpi eta. 

(4)  ?, 


(5>  P., 

“jA  quS  voltage  nfnlno  por  pil^flebe  pararso  la  ccrgn  oon  corriejte 
normal ? 

-Las  pi  laa  pueden  dee-iargarse  beats  qua  eat&  couplet amente  agefca- 
daa  sln^oBtengsn  el  manor  daRo.  Kcaotros  conaldermnoa  la  deacarga 
ooapleta  cnendo  la  pila  llegcie  a  1.00  voltio,  alendo  todr.a  laa  oandl- 
ciosea  narmalOBo 

-Oapaoldad  5  potenoia  en  oada  tipo  ea  aapexe-horaa.,  tPneden  ladicer 
Xa  oapaoldad  pom  otroa  tSftos  de  da  coarse*  por  ej«s>lo0  ea  Sc  10  y 

2E  boras? 

•Le  nandareroos  ourvae  que  naqatran  aao.  La  oape.oiiaO.  -it  la  pile 
no  se  altera  cucbo  por  variar  el  tipo  de  deneargaj  el  efaoto^a  ee 
el  voltage  de  las  pilaa-  Bn  el  tipo  A-4,  ?e  obtendr*  ,03  de  valtio 
le  disminuol6n  -nor  oada  10  ompcrloa  de  anraanto  on  eaqsoO  de  la  doe- 
oaxga  normaljen  el  tipo  A-S,  one  diacdanaidn  Ae  ,03  por  aujoento  do 
IB  amperios,  y  para  el  tipo  A-0,  ana  diatlnnoion  d*  ,03  de  voltio 
por  oada  20  emperloa  de  anmanto. 

-jpaoden  indioar  la  curve  do  laa  potenclaleB  oon  oirauito  abler to 


-v-*  ..«<•  w,;, 

t  i--i -  .•/  ■.'•*  ??*  ^:.  ■"*'.-  5  . '  **T**.A 

ea  oirouJto  ablerfco  no  tienc  valor  pnrtieuiar  pora  el  funolonsmiento 


(7)P-'Habianflo  estedo  la  plla  deoaonsaado  oierto  tlampo,  eta. 

n-ttaa  plla  coinpleteaente  deaoargada,  as!  oooo  ana  pile  couplatassonte  aorgada, 
deacons ar£  da  1.4  a  1.46  voltioa;  plla 9  da  voltage  ablerko  coneataflas  an 
opoololSn,  no  ee  1 goal aria  nuoho,  aunque  estfin  on  lifer oaten  estados  do  car- 

(8)p-iCuol  as  la  perdida  dlor.ln  de  pofconola  da  uaa  Bator! a  ccrgadaj  pero  no  uaa- 

4*?  .  '  . 

B-las  tarda  le  eiwis?csos  la  curva.  La  perdiaa  an  %  por  p erjaaneaer  sin  fnn- 
clonar  i  75o  Parethelt,  is  com  algu es- 

12  horaoa....  6%  6  lias . 11-1/2# 

1  dla . .  9%  7  "  oo..  .12# 

2  dins......  9-1/2#  8  "  ..,...ia~l/2?S 

3  "  ......Mtf  9  "  oo...  13# 

4  »  .....*10-1/2#  10  "  .....13-1/2# 

5  -  .,..,.115? 

(9)  SKDespnio  de  oargarso,  qua  pore lento  ne  plerde?  ' 

B- Ob serve  la  ourva  6-B  qua  le  enviare'aos. 

(10)  B-oCaal  es  el  mojor  netodo  de  juzgar  del  grade  de  oarga  de  nna  Pila  Edison? 

B-  JJanSjeae  ooao  tm  tanque.  Gulsse  por  la  oarga  de  anpero-hora., 

(11)  B-Peso  de  la  noluciSn  de  potaaa  nacesaria  para  loa  diforentes  tlpos  do  pilas. 
B-pSgina  27  del  libro  da  inforiracicn. 

(12)  P-Aluirisredo  do  venlculos. 

B-Ho  es  neoeaario  regularlaar  ol  voltage  para  las  luoea  del  vahloulo;  es  prefe 
ribla  que  no  oean  m£s  de  veiate.  OonSctesa  con  una  seccion  de  la  boterla. 

(14)  b-jUob  naadarlan  plan  del  tablero  de  oarga  enpleado  en  los  S.  U.V 
R-Aqul  inolulEcs  dlseHo  para  el  tablero  de  oarga. 

(15)  TUjQui  asadios  ae  empleon  para  znsdir  In  enargla  de  las  Pilas? 

H-La  major  nanera  de  deterialnar  la  energfa  oosnumlda  por  la  baterla  es  con 
el  Vatlcotro  de  C.  B. 

Oonfiamos  cue  la  lafbrsaci&a  dsda  ea  oots  carta  Uenar&  todos  sue  requisites,  y  si 
deseara  mas  lafonaea,  teadrlacos  audio  gusto  ea  daraeloa. 

Be  V,  attos.  S.  3. , 


P.  B. :  golameate  podemos  inolulr  ohora  el  plan  dol  tablero  de  oarga.  lo  tenfis  estfi 
imprimifindose  y  se  lo  tnandaramon  tan  pronto  eat4  llerto.  Vfl.TR.. 

e star fa  dera^a  el  declrlo  pare  'su  eoblerno  gue  ia 
Kada  a  I’0f’or  £l  3r*  -tiiaon,  pare  poder  vender  las 
a  derechos  de  inventor:- 

50  centavos  por  Tipoa  a-4 
90  "  ..  „  A_6 
.20  por  'Jipos . A_0 

"  ”  . S-4  do  s  pilas 

1  descuonty  cofcrc  ester. 

teterfao,  dichos  derechos 

!.  o  .  Mennedy, 

Ciat  Itlison  Iiispano  Americana. 
Buenoe  Aires,  R.  A. 

\V&  have  your  esteemed  favor  of  the  5th  ulto.. 
replying  to  mins  of  July  l9th  in  reference  to  the  sale  of  Edison 
Storage  Batteries  in  your  territory. 

I  have  taken  clue  note  of  what  you  say  about  the  necessity 
of  having  samples  and  literature  before  you  could  take  up  the 
matter  seriously,  and  do  not  understand  why  yOu  did  not  receive  cat¬ 
alogues  and  descriptive  matter,  as  they  certainly  were  forwarded  to 

I7e  are  to-day  sending  you  another  complete  set  under  reg¬ 
istered  covers 

T  might  state, however ,  for  your  information  that  I  have 
just  been  advised  by  our  President,  Mr,  Dyer,  that  he  has  assigned 
the  territory  covered  by  Argentine^  Paraguay  and  Uruguay  to  Messrs. 
Ae®T*.i  Cross  &  Co.,'  11  Broadway,  IT,  •  Tf,  I  do  not  know  anything  about 
the  arrangements  made  with  the sp  people. but  feel  sure  that  before 
this  territory  was  assigned,  a  substantial  business  must  have  been 
guaranteed  by  them.  I  would  advise' that  when  this  matter  was  first 
taken  up  regarding  the  foreign  sale  of  Storage  Batteries,  my  idea 
was  that  a  large 'business  could  be  done,  and  a  good  profit  made, 
which  would  help  us  in  a  material  way  to  increase  our  profits  at 
the  end  of  the  year/  I  find,  however,  that  on  account  of  Mr.  Ed¬ 
ison’s  Idea  to  supply  these  cells  to  the  trade  at  the  lowest  poss¬ 
ible  price,  tha p  'the  discount,  namely  20 %  which  is  allowed  to  the 
Irade,  is  the  best  discount  they  could  allow  up;  hence,  in  handling 
that  Part  of  the  business,  it  is  sipvply  a  labor  of  love.  As  the 
sale  Of  these  batteries  increase,  undoubtedly  the  cost  of  production 
wi^.1  be  greatly  jrpdu'ced,'  emdthere  is.  a  possibility  trf  the  future  of 
■out  receiving  some  profit.  Under  .t]pe  circumstances,  therefore,  it 
:  ip  just  as  welt-  that  they  have  assigned  your  territory  to  other 
parties,,  as'  you  .would  Peplly  be  handling  the  business  at  a  loss. 

It  will,  therefore,  be  impossible  for  you  to  do  anything  with  this 
end  of  the  business  for  the  present  at  least. 

Manager*  foreign  Deplt. 


With  reference  to  Ho.  25G66,  wo  have  written  you  several  times,  asking 
for  shipping  dates,  and  in  your  memorandum  of  the  4th  inst.  you  advised  that  shipment 
would  he  made  within  two  weokB.  Will  you  kindly  advise  ub  if  shipment  is  ready?  it 
is  no w  over  two  months  since  this  order  was  placed  with  us,  which  is  certainly  long 
enough.  On  the  strength  of  your  memorandum  of  Oot.  12th,  in  which  you  advised  us  that 
this  order  would  ho  delivered  within  three  or  four  weeks,  we  wrote  our  olient  that 
Bhipmont  would  he  made  about  2Iov.  10th.  You  will  understand  that  it  is  somewhat  an¬ 
noying  to  have  to  write  our  customer  advising  him  of  further  delay,  in  v iew  of  the 
fact  that  his  ordor  has  been  held  so  long. 

Will  y.ou  kindly  advise  us  definitely  when  shipment  against  our  orders 
Nob.  25712,  25713  and  25719  can  he  made?  These  are  orders  from  New  York  exporters, 
and  it  is  absolutely  necessary  that  wo  keep  thorn  advised  ae  to  dates  of  shipment,  in 
ordor  that  they  can  make  proper  arrangements  for  placing  same  aboard  steamer.  It  is 
now  over  a  month  sinoe  these  orders  wore  placed  -with  you,  and  we  have  had  no  advice 
from  you  whatever,  other  than  your  acknowledgment. 

Referring  to  our  memorandum  of  Nov.  11th,  to  which  we  have  received  no 
reply,  we  again  beg  to  call  your  attention  to  our  order  No.  25720,  for  shipment  to 
our  representative  in  Spain,  Ur.  Arturo  Landa.  This  gentleman,  as  already  advised, 
has  gone  to  considerable  expense  in  advertising  the  Edison  Storage  Battery,  and  he 
expects  to  take  up  the  business  on  a  large  scale.  Naturally,  he  is  anxious  to  re- 
oeive  his  sample  order,  in  ordor  to  thoroughly  test  same.  We  are  particularly  a 
ioue  that  this  order  be  executed  promptly and  would  request  that  you  advise  ub  im¬ 

mediately  what  you  can  do. 


Wo  al90  bey  to  call  your  attention  to  our  memorandum  of  Kov.  14th, 
with  reference  to  our  order  Ho.  25765,  for  shipment  to  Hr.  Lilian  of  Havana,  Cuba. 

We  have  received  no  reply  to  this  memorandum.  As  advised  therein,  v/e  have  been  re¬ 
quested  by  this  gentleman's  Hew  York  representative  to  make  shipment  immediately, 
as  he  is  holding  a  quantity  of  merchandise  for  shipment  to  Ur.  llilian,  awaiting  re¬ 
ceipt  of  our  order. 

All  these  orders  are  from  people  in  remote  quarters,  and  as  in  every 
case  remittance  has  accompanied  order,  and  necessarily  a  long  time  must  elapse,  even 
if  orders  are  filled  promptly,  you  will  understand  that  long  delays  in  the  execution 
of  order  are-  not  conducive  to  friendly  relations. 

In  the  case  of  the  New  York  exporters ,  who  arc  our  regular  customers 
for  other  apparatus,  it  1b  very  annoying  to  have  to  repeatedly  advise  them  of  delay. 




General  counsel  t  Tice— President,  Edison  storage  Battery  co. 

Dear  Slrs- 

Por  your  oonaideration  and  comments  we  beg  to  jjuote  as  follows-  from  a  letter 
^tsd  Hovember  30th  and  written  to  ua  by  Ur.  Arturo  Leads,  Barcelona,  Spain*  to  whom 
have  recently  granted  the  exclusive  agency  for  the  sale  of  our  storage  batteries 
lh  his  oountry,  Hr..  Lands,  in  a  previoua  letter  dated  August  20th,  1910  (to  which 
he  refers  in  the  following  quotation)  ashed  us  to  give  him  the  numbers-  of'  tha  patents 
obtained  by  us  for  protecting  our  Storage  Batteries  In  Spain.  We  gave  him. the  desired 
Information  to  which  he  answers  as  follows:- 

"PATEHT:  As  I  had  advised  you  la  w  previous  letter,  aft  or  having 
carefully  examined  this  matter  with  Hr.  Bonet,  nonsuiting  engineer,  1  beg  to 
refer  again  to  this  particular,  in  order  to  inform  you  concerning. the  same. 

In  the  first  plaoe,  I  beg  to  advise  that  the  failure  to  find  before 
the  registry  of  your  patents  has  been  due  to  the  fact  that  the  official'  indexes 
of  the  Ministry  of  Public  Development  ( "Wnioterlo  de  pomento”)  show  the  same 
under  the  name  of  Alta  (Thomas)  r  while  we  had  looked  for  them  under  the  names 
of  Edison  (T»A . )  and  "sooiete  Edison".  In- which  manner  other  inventions  of  this 
gentleman  have  been  registered, 

:  (finally, .  with  reference  to  the  validity  of  the  patents  on  the  Storage 
Battery, :  thd  nitobers  of  which  you.  have  given  mot  I  beg  to  advise  that  in  Spain 
the  Invention  J^erAs'  ore'  fOrr  20-years,  but.  In  order  that  they  may  be  valid 
during  all  that  tin*,  it  Is  abeolutaly-neawwasiy.-that  it  be  officially  proved 
during  the  three  f^oWing  yesro'  tha^tfcw^pWteoted  Invention  Is  manufaatureci 
In  Spanish  territory.  After  thl*  thxss«y«BEfr^t«m ^granted  by  the  law  elapaee, 
the  patent  is  void,  ana.-  Is-.-  oC'ntf  account  whatever,  If  it  has  not  been  proved  be¬ 
fore  the  Teohnloa^  GOmtoissloir  officially  daalggahsd  for^tiie  purpose  that  the 
patented  Invention  i»  manufactured  In  Spain.,  As- 1  believe  that  yon  havo  dot 
manufactured  the  Storage  Bsttary  in  our  terrttory^  your  phtent  of  Invention  has 
lost  Its  validity  and, has  b*ooa»  void.. 

Bow,  onaeopunt  of  thin,  «py  cMj^panjtor.  any  pet  eon  oould  harm  you  greatl 
by  taking  advantage  of1  the  jur*#snt  naiilfloatlon  of  the  patent  that  you  possess. 

l  ^  a  *****  «T  Introduction  (which,  within  one  jmt 

of  »“^“*ttrta8  fw  five  years)  would  handicap  ^ 
tl»e  business  in  Spanish  territory.  Fortunately,  bel«« always 
8aV°  ***  ****  my.  difficulties  -and  trloke  thrt  MgS^ur 
■ad  damage  you  and  the  representation  you  have  granted,  c*.  1  have .  as  I  faare  told 
at  «aPP  i°l ft,r  8,14  oUatnad  ,a»  Patent  of  Inirodootiob  tor  Spain  of  the 

5°8 f  8/?S/W10.  ”W*  *°  tM8“Pat*at  I  «»«*>»  "hat  i  told  you  in-ny  lett« 

.  .  .  I^?u?port  °r  ^ha  explanations  I  giro  shore  i  am  aendin^you  a  letter 
^nst.,  written  by  Mr.  Bonet,  the  consulting  entffcsMr? which 
to9  1901  “2  1903  patents  hare  become  void!  Ibegyou  to  retain 
this- letter  to  ne  ae  soon  «s  you  hare  taken  due  note  of  ite  oontedts, 

,,  _  I  boilers  that  I  hare  done  the  right  thine  in  this  natter,  in  foliar,*, 

S^V^L*0  ^  OHff  °f  Protecting  your  inters  eta,  by  ay  knowledge  of  the 
08  1  df*“  lt  duty  t0  alwaj'8  follow  this  polioy  Inf  the  teiv 
Tltory  in  which  1  represent  you."  ' 

WO  await  your  q omenta  in  this  matter,  and  beg  to  remain. 

fours  rery  truly. 


Assistant  Manager,  Foreign  Department. 


B.^XKC  .  ) 


We  quote  below  from  letter  received  from  parjy  in  New  York,  with 
reference  to  the  nee  of  Storage  Batterlee  in  connection  with  submarine  boats, - 

•iy;e  have  no  doubt  that  the  question  of  applying  your 
_  4. tv6  nubmarine  boats  has  been  well  considered  by  you,  as  the 
same  ^lays  quite  an  important^art^in  }f Si^most  of  the  eUb- 

_T  .  ort-fwo  service.  and  as  ^e  ara  desirous 

mnrine  boats  to  the  Japanese  Bqvy  now  ^  lM  fQr  tieir  new  requirements,  such 
of  making  recommendation of effii ci  n  “  ld  ploase  forward  to  us  any 

tsgsrss  —  - — -  - °*  ( 

same.  „nu  piaase  understand  at  the  present  mo-' 

.».»*.  SS^fS^S--.  -  -  “  -  “  — 

the  way  for  future  inquiries.^  auWlnaB  ^ed  by  the  Japanese  Kavy  arc  of  Hol¬ 
land  type." 

«n  ««»  -  J"”  ““»*•  “  *“  “  y“r  “rl 



Mr.  A.  Lespinasse, 

American  Consul, 

Front era,  Tab,  Mexico. 

Dear  Sir t- 

Xour  esteemed  favor  of  the  2pth  ult.,  received. 
Complying  «lth  your  request,  we  have  pleasure  in  forwarding 
you  under  separate  Cover,  our  Storage  Battery  Catalog  and  rrice- 
list,  which  you  will  find  fully  descriptive.  We  are  also  send¬ 
ing  you  -a  Bmall  supply  of  our  printed  matter  and  we  Bhould  he 
pleased  to  have  you  distribute  same  among  prospective  customers, 
in  accordance  with  your  suggestion. 

Referring  to  the  second  paragraph  of  your  letter, 
hetr  to  advice  that  a  email  lighting  plant  to  operate  5  - 

is  net  excessive. 

...  «  S- 

mend  the  use  of  a  senerator  capable  of  developing  Y.  and 

volts.  The  general  ”  are  both  develop- 

the  Diehl  Mfg.  Company  °f  Vwouia  recommend  for 

inga  line  of  generators  of  this  .type*  ^ators,  having  a  capacity 
barging  this  battery,  °“  °,  this^generator  we  would  recommend 

Of  at  least  1  K*Y.  /or.driving  gJ®ft«^e“”eaBon  why  an  equipment 
a  gas  engine  of  at  least  2  H.r.  Tn  satisfaction.  The  batteries 

of£this- nature  should  not  S^e  absolu  e  sati  .  atiecharged 

can  be  overcharged  o'  SithSt sustaining  the  slightest 

Si^^fthey^lo1? $gSfi£  attention  of  an  expert  electri- 

By  referring  Jef 

j/lifSe  prices^oLted  in  ~ur  catalog  are 

#2-A.  J.  iespinasee- 
Jan.  IS,  1911. 

f-o»h-  Orange,  K.  J.  and  we 
are  cash  with  order. 

make  no  charge  for  packing. 

Our  term 

n  ^  bee  to  thank  you  for  the  interest  you  ai 

*rderi^  lcatter  ana  we  tl-ust  same  will^jg  to  the  placing 

•e  taking 
of  year- 

Thanking  you  ft 

jr  same,  we  keg  to  remain 


Yours  very  trul^y,.  ,-J'y